Ruling by the Bordeaux Administrative Court of Appeal regarding a dealer agreement
A taxpayer had entered into a dealer agreement with a limited liability company (SARL) under which, in exchange for a payment of money, he temporarily transferred the benefits of his financial rights arising from his interest in a real estate investment company (SCI).
The taxpayer considered that he could no longer be taxed on the SCI’s income.
administration had initially intended to apply the abuse of rights procedure. However, they changed the legal basis before the Administrative Court of Appeal.
The Court holds that the dealer’s agreement constitutes a disposition by the taxpayer and that, consequently, the agreement does not exempt the taxpayer from liability for tax on the SCI’s income.
It therefore dismisses his motion.