Decisions of the Council of State from the last two weeks of December

During the last two weeks of December, the Conseil d'Etat rulings regarding:

- The impact of a change in business activity on requests to carry back losses (Court of Appeal, 8th and 3rd Chambers, Dec. 23, 2025, No. 500342, Lebon T.)

- Tax assessment based on the taxpayer’s return that does not take into account a specific statement in the return does not constitute a correction procedure. It also rules on the application of the CIMR in the event of a self-employed worker ceasing business operations (CE, 9th and 10th Ch., Dec. 19, 2025, No. 496179, Lebon T.)

- Notification of the rejection of a claim to a taxpayer does not trigger the time limit for filing a complaint with the Tax Court against their former spouse or spouse if they are filing separate tax returns (Council of State, 9th and 10th Chambers, Dec. 19, 2025, No. 499976, Lebon T.)

- the condition that the taxpayer must not be deprived of a guarantee in order to effect a change in the legal basis, and more specifically, the referral to the CIDTCA (Council of State, 3rd and 8th Chambers, Dec. 23, 2025, No. 491806, Lebon T.)

- the non-confiscatory nature of the TEOM (Council of State, 8th and 3rd Chambers, Dec. 23, 2025, No. 497209, Lebon T.)

- the requests that a taxpayer may make to the court in the event of a partial acceptance of their claim (Council of State, 8th and 3rd Chambers, Dec. 23, 2025, No. 503744, Lebon T.)

- Who is liable for the housing tax in the event of a lease being terminated by a court (CE, 3rd and 8th Divisions, Dec. 30, 2025, No. 497932, Lebon T.)

- the tax credit for investments in Corsica for investments made jointly (CE, 9th and 10th paras., Dec. 19, 2025, No. 502669, unpublished)

- the application of the exemption from corporate income tax for unincorporated partnerships whose commercial income does not exceed 10% of their pre-tax revenue (CE, 8th and 3rd Div., Dec. 23, 2025, No. 503043, unpublished)

- The CIR New Collection and the inability to invoke the doctrine in cases of subcontracting (Council of State, 9th Chamber, Dec. 30, 2025, No. 506487, unpublished; reversal of the Administrative Court of Appeal’s decision holding that the BOFiP was enforceable: link to news article)

It has also issued case-specific rulings regarding:

- the requirement thatadministration an oral and adversarial hearing regarding accounting documents obtained through a judicial order (Court of Appeal, 3rd Chamber, Dec. 23, 2025, No. 470748, unpublished)

- the time limits for filing a complaint with the Administrative Court following the rejection of a claim that does not specify the available remedies and time limits (Council of State, 3rd Chamber, Dec. 23, 2025, No. 500477, unpublished)

- the requirement that, in order to classify a hidden payment, the judge must determine whether the amounts were recorded in the books and assess the accuracy of the description used in their accounting (Council of State, 9th Chamber, Dec. 30, 2025, No. 500729, unpublished)

- the application of the maintenance factor in the assessment of rental value (Supreme Court, 8th Chamber, Dec. 22, 2025, No. 474931, unpublished)

- regarding the TEOM (Court of Appeal, 3rd Chamber, Dec. 23, 2025, No. 496106, unpublished)

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