Decisions of the Council of State dated March 12, 2025

Yesterday, the Conseil d'Etat several rulings on tax matters, including:

- The characterization of an act of mismanagement in connection with a borrower’s failure to establish security, which allegedly led to the payment of interest at an excessive rate (Supreme Court): Council of State, 9th and 10th Chambers, March 12, 2025, No. 474279, Cited in the tables

- Deliberate accounting errors and the recording of equity securities in the books (Vivendi case): Council of State, 8th and 3rd Chambers, March 12, 2025, No. 491714, Unpublished

- The deductibility of provisions, for a partner in an SCI subject to corporate income tax, in respect of a receivable that the partner has extended to the SCI: Court of Appeal, 9th and 10th Chambers, March 12, 2025, No. 474824, Cited in the tables

- The allocation of tax on excess provisions: CE, 8th and 3rd Divisions, March 12, 2025, No. 494160, Cited in the tables

- the invalidity of an audit if the auditor did not visit the premises. However, provided thatadministration base the assessment on documents derived from the taxpayer’s accounting records, the procedure is not invalid: Council of State, 3rd Chamber, March 12, 2025, No. 474260, Unpublished