Tax Rulings by Supreme Courts (Week of July 6–10, 2026)
Last week, the Conseil d'Etat the Court of Cassation issued rulings concerning:
the failure to apply Article 123 bis to the holding of securities in companies treated as partnerships under French law, and the treatment of Luxembourg single-member limited liability companies as French SARLs with a sole member (CE, 8th and 3rd Chambers, July 6, 2026, No. 501276, Lebon T.)
The absence of taxation on the receivable arising from the exercise of a better-fortune clause provided for in connection with a debt waiver when that waiver was not deducted for tax purposes (CE, 9th and 10th Ch., July 7, 2026, No. 506015, Lebon T.)
The mere assertion byadministration was no ambiguity regarding the capitalized nature of expenses deducted as operating expenses does not constitute a finding of willful noncompliance (CE, 9th and 10th Ch., July 7, 2026, No. 506015, Lebon T.)
the requirementadministration accounting documents voluntarily submitted by the taxpayer before the conclusion of the audit (CE, 8th and 3rd paragraphs, July 6, 2026, No. 503370, Lebon T.)
the requirementadministration a request for an internal appeal following a reassessment proposal a document review (CE, 8th and 3rd Ch., July 6, 2026, No. 505004, Lebon T.)
The deductibility of VAT on purchases of light bulbs donated to individuals (CE, 9th and 10th paragraphs, July 7, 2026, No. 504974, Lebon T.)
The deadline for filing an application for approval of a loss carryforward in connection with a simplified merger (CE, paras. 9 and 10, July 7, 2026, No. 503399, Lebon T.)
The valuation of the primary residence for purposes of the housing tax is determined on a taxpayer-by-taxpayer basis, rather than at the level of the tax household (CE, 9th and 10th Ch., July 7, 2026, No. 506653, Lebon T.)
The requirement that a notary have an express power of attorney to respond to a reassessment proposal Commercial Court of Cassation, July 8, 2026, No. 25-11.097, Published)
The failure to take into account gifts made by a decedent to a renouncing heir when calculating inheritance tax for the person receiving the inheritance (Cass. com., July 8, 2026, No. 25-13.219, Published)
The Validity of a Demand for Payment in the Absence of a Filed 3% Real Estate Tax Return and the Application of the Tax in the Context of a Trust (Commercial Court of Cassation, July 8, 2026, No. 25-12.737, Published)
the obligation to forward an appeal addressed to an administration to the competent authority, and the failure to provide specific information regarding the procedures and deadlines for filing an appeal by citing the relevant articles and specifying that they are available on the Légifrance website (Cass. com., July 8, 2026, No. 24-21.157, Published)
referrals for preliminary rulings regarding the tax on share buybacks (CE, 8th and 3rd Chambers, July 6, 2025, No. 508944, unpublished; link to news article) and the treatment of payroll tax under the Parent-Subsidiary Directive (CE, 9th and 10th Chambers, July 7, 2026, No. 508049, unpublished; link to news article)
No Abuse of Rights Regarding the “Quéméner Correction” (“FRA SCI” Case) (Council of State, 8th and 3rd Chambers, July 6, 2026, No. 496500, unpublished)
a taxpayer’s status as the principal party in the case (Council of State, 9th Chamber, July 8, 2026, No. 510127, unpublished)
This legal watch provided by Mispelon Avocat, a law firm specializing in French tax audit and French tax litigation. You can stay legal watch subscribing to the newsletter via this link.