Consulting CRIDON does not exempt you from penalties for willful noncompliance

A company had acquired some land with the intention of building a structure on it but subsequently sold the land without having built the structure.

It had determined that the sale of the land was related to the management of its real estate assets and that it was not required to charge VAT on the sale of the land.

The notary's drafting of the deed of sale had also prompted a consultation with the Center for Notarial Research, Information, and Documentation (i.e., CRIDON).

Following a tax audit, the French Tax Authority (administration ) determined that the sales were subject to VAT and issued a tax assessment to the company. The assessment was accompanied by a 40% penalty for willful noncompliance.

The case was brought before the Court of Appeal ( Conseil d'Etat). The court ruled that the VAT was indeed due. It further held that a search of the CRIDON database was not sufficient to rule out the possibility that the company intended to evade taxes.

He noted that the company’s manager had been running real estate companies for many years and therefore could not have been unaware of the laws governing building lots. In his view, this constituted a deliberate violation.

The tax assessment is therefore confirmed.

CE, 9th Chamber, July 29, 2026, No. 499315, unpublished

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