Decisions of the Court of Cassation dated March 13, 2024

Yesterday, the Court of Cassation issued two tax rulings concerning:

- the classification of the property as business property for purposes of the wealth tax (ISF) and the requirement that the company engage in an industrial, commercial, craft, agricultural, or professional activity. This condition must (i) be met as of January 1 of each year and (ii) in the case of mixed activities (i.e., when the company also engages in a civil activity), the preponderance of the industrial, commercial, craft, agricultural, or professional activity is assessed “in light of a set of indicators determined based on the nature of the activity and the conditions under which it is carried out”: Commercial Court of Cassation, March 13, 2024, No. 22-15.300, Published

- the options available regarding the deferred payment of inheritance tax. The Court clarifies that“the option offered to the taxpayer between the deferred payment of tax, based on the taxable value of the bare ownership of the inherited property as of the date of the opening of the estate, with the payment of annual interest, and the deferred payment of duties, based on the taxable value of full ownership of such assets, with an exemption from interest—which does not constitute a tax benefit offered to the taxpayer but rather an option for the payment of a tax—implies an irrevocable choice by the taxpayer”: Cass. com., March 13, 2024, No. 22-16.190, Published