Non-deductibility of a fee reimbursement: the Council of State grants the appeal

Following a tax audit of a lawyer, the lawyer received a reassessment proposal whichadministration disputed, among other things, the deductibility of a fee reimbursement made by the lawyer to one of his clients.

However, this reimbursement had been made following a decision by the president of the bar association, which had been upheld by the Court of Appeals. The lawyer therefore believed he had incurred a loss that was deductible from his professional income.

This view was not shared by the Administrative Court of Appeal, which ruled that“such losses incurred by [the attorney] cannot be regarded as expenses related to the normal practice of the profession, even if they did not result in disciplinary action by the professional regulatory bodies.”

The Council of State has just accepted the appeal filed against the decision of the Administrative Court of Appeals. It will therefore soon rule on the validity of the reasoning adopted by the Court.

EC, 8th Chamber, June 20, 2025, No. 499138, unpublished

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