Decisions of the Council of State dated November 24, 2024

On Friday, the Eighth Chamber of the Council of State issued rulings that serve as a reminder that:

- To determine the legality of a request byadministration to change the legal basis, the judge must assess, "in light of the nature of the dispute between the taxpayer andadministration," whether the taxpayer would have been deprived of a legal safeguard. In this case, the taxpayer had been taxed on property income.administration requested a change in the legal basis to non-commercial profits, which had been denied by the Administrative Court of Appeal. The Council of State held that since the taxpayer was merely contesting the taxable nature of the sums, the Administrative Court of Appeal had committed an error of law: CE, 8th Chamber, Nov. 22, 2024, No. 477316, Unpublished

- Deemed distributed income, as defined in Article 111,"shall be treated, for purposes of social security contributions, solely as earned income to the extent that it exceeds 10% of the share capital and issue premiums, as well as amounts paid into a current account." It is nevertheless incumbent upon the taxpayer, in this situation, to provide evidence when he or she believes that such income is subject to social security contributions as earned income: CE, 8th Chamber, Nov. 22, 2024, No. 473909, Unpublished