Filing a tax return showing no taxable income precludes the tax authority from assessing tax on its own initiative

Following a tax audit, a foreign company was subject to a tax examination becauseadministration it had a permanent establishment in France.

administration thenadministration a formal notice to the company, requiring it to file tax returns.

The company had then filed tax returns that did not show any taxable income, as it believed it was not subject to taxation in France.

administration therefore determined that it was entitled to initiate the ex officio assessment procedure.

The company challenged the tax assessment all the way to the Administrative Court of Appeals.

The court will first note that it was not possible to conclude that the company was engaged in covert activities in France, since it provided proof of its registration in the SIRENE directory and its registration date with INSEE.

The Court will then reiterate the provisions stipulating that the ex officio assessment procedure does not apply when the taxpayer brings his or her situation into compliance within thirty days of receiving a formal notice to file a tax return.

It will then rule that the taxpayer’s filing of a tax return showing no taxable income does not mean that the taxpayer has not brought his or her situation into compliance.

The Court finds that the proceedings were therefore improper and exonerates the company.

CAA Paris, June 19, 2026, No. 24PA04970

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