Professional bodies: future major players in tax litigation?

In a decision dated December 20 of last year (Council of State, 9th and 10th Chambers, Dec. 20, 2024, No. 492713, cited in the tables), the Council of State highlights a new exception to the principle that tax rulings cannot be challenged before it on the grounds of abuse of power.

In fact, due to the exception regarding parallel appeals, a taxpayer cannot seek, through an action for abuse of power, the annulment of a ruling he or she has obtained fromadministration.

In its 2016 Export Press decision, the Council of State introduced an exception allowing taxpayers to challenge the validity of a tax ruling if they can demonstrate that applying the ruling would result in, among other things,“significant non-fiscal consequences.”

In its December 20 decision, the Council of State highlights a second exception where the request for a ruling is not filed by the taxpayer but by a professional organization. It holds that the request is admissible, regardless of whether or not it has significant non-tax implications.

Taxpayers can thus secure their position through their professional organizations by filing a request for a ruling and, if the response fromadministration unsatisfactory, by challenging it directly before the Council of State to obtain a ruling from the highest court.

Our firm, which specializes in tax audits and litigation, can assist clients with these proceedings. If you would like to discuss this further, please contact us at the following address: contact@mispelonavocat.com