Published May 29, 2012 11:59
Having incurred the wrath of the Greek people that it calls to pay his taxes, the Executive Director of the IMF is at the heart of a controversy based on their specific tax status as international civil servants.
New outcry for Christine Lagarde. Three days after he shocked the political establishment by urging Greeks to pay taxes, the Executive Director of the International Monetary Fund suffers lightning ranks.
Most complain that the former Minister of Economy, who currently earns 380,939 euros per year, pays no income taxes.The explanation is given by the Vienna Convention on Diplomatic Relations from 1961: as an official international, Christine Lagarde benefit of a specific tax status. Article 34 states that “diplomatic agent is exempt from all dues and taxes, personal or real, national, regional or municipal.”
However, the article adds that the diplomatic agent is liable for certain other taxes such as “taxes on private immovable property situated in the territory of the receiving State, unless the diplomatic agent holds it on account of the sending State for the purpose of the mission. “
The Foreign Ministry said that this specific tax status also benefits the leaders of international institutions like the International Atomic Energy Agency, the World Health Organization, UNESCO or the International Bank for Reconstruction and Development. European officials have also in part of this tax benefit. Find this article on Figaro.fr