Decisions of the Council of State dated February 5, 2025

Yesterday, the Council of State issued several tax rulings concerning, in particular:

- The entry into force of the exit tax between March 3, 2011, and May 11, 2011, was contrary to European Union law: Council of State, 9th and 10th Chambers, Feb. 5, 2025, No. 476399, Cited in the tables

- The conditions under which a taxpayer may choose not to include, for the purpose of determining taxable income, unrealized foreign exchange gains and losses recognized at the end of the fiscal year on receivables corresponding to loans denominated in foreign currency granted to subsidiaries: CE, 8th and 3rd Div., Feb. 5, 2025, No. 491525, Cited in the tables

- The terms and conditions for the entry into force of the new version of Article L.188 C, which provides for an extension of the time limit for reassessment in the event that omissions or deficiencies in taxation are revealed through "judicial proceedings such as a preliminary investigation, an investigation into an offense committed in flagrante delicto, or during the review of charges by the public prosecutor": CE, 9th and 10th Ch., Feb. 5, 2025, No. 487980, Cited in the tables

- A dispute over compensation following an increase in the VAT rate. The Council of State ruled that a judge may rule on the merits of the case and on the claim for compensation. It further noted that the refusal to reimburse VAT credits may affect the company’s financial situation and may give rise to compensation: Council of State, 8th and 3rd Chambers, Feb. 5, 2025, No. 489647, Cited in the tables

- Property tax when leasing land to a nursery: CE, Chapters 9 and 10, Feb. 5, 2025, No. 491507, Cited in the tables

- Radio stations and IFER: CE, 8th and 3rd, Feb. 5, 2025, No. 495371, Listed in the tables