Decisions by the Administrative Courts of Appeal regarding the deductibility of the FRU and the tax on vacant housing

In the final days of December, the administrative courts of appeal issued rulings on tax matters concerning, in particular:

- the non-deductibility of payments to the Single Resolution Fund ("SRF") for purposes of the CVAE. The Paris Administrative Court of Appeal ruled that "the contribution to the FRU cannot be regarded as a banking operating expense or a miscellaneous operating expense within the meaning of the aforementioned subparagraph b of Section III of Article 1586 sexies of the General Tax Code and, consequently, cannot be deducted from the tax base for the corporate value-added tax": Paris Administrative Court of Appeal, Dec. 20, 2024, Nos. 23PA05047 and 23PA05188

- The procedures for applying the constitutional exception regarding the inability to subject to the vacant housing tax “housing units that could only be made habitable through major renovations”: Administrative Court of Appeal of Nantes, Dec. 24, 2024, No. 24NT01840. The prohibition on renting out housing units considered to be energy-inefficient could be a factor to highlight when requesting exemption from this tax.