Decisions of the Court of Cassation dated May 10, 2024

The Court of Cassation issued several rulings on Friday regarding the 3% tax, the exemption of business assets from the wealth tax (ISF), the calculation of the wealth tax cap, and the notification of a reassessment proposal unclaimed mail.

With regard to the exemption for business assets, it clarifies that (i) a holding company that does not control any operating subsidiaries cannot be classified as a managing holding company (in this case, the entity in question was an SCI) and (ii) the criteria for determining the primary nature of a company’s business.
Cass. com., May 10, 2024, No. 22-18.812, Published

With regard to the cap, the court held that a partner’s funds deposited in a checking account should not be taken into account when calculating the wealth tax (ISF) cap if the IR corporation has not reported a profit.
Cass. com., May 10, 2024, No. 22-18.988, Published

With regard to the 3% tax on real estate and the identity of the persons who must be declared in order to qualify for the exemption, it states that potential beneficiaries need not be considered shareholders, partners, or members. The entity that declares a future beneficiary therefore does not meet the conditions to qualify for the exemption.
Cass. com., May 10, 2024, No. 21-11.230, Published

With regard to the notification of the reassessment proposal an unclaimed letter, it specifies that in the event of a dispute regarding such notification,administration provide proof (i) that the recipient was notified by a delivery notice that the letter was available to the taxpayer at the post office for 15 days and (ii) that the letter was not returned to the sender before the expiration of that period. In this case, the appellate ruling is overturned on the basis of the second condition.
Cass. com., May 10, 2024, No. 22-14.130, Published