The review of a business bank account during an ESFP is sometimes irregular

A married couple was subject to a personal tax audit as part of a personal tax situation review (ESFP).

During this audit, the tax administration (administration ) gained access to the taxpayers' bank accounts and, in particular, reviewed the transactions in an account titled "XXX ARTISAN TAXI."

Following this audit, the French Tax Authority (administration ) issued a tax assessment, which the taxpayers contested all the way to the Administrative Court of Appeals.

It will then reiterate, as held by the Conseil d'Etat (CE, 9th Sub-Section, Dec. 30, 2010, No. 318327, unpublished), that theadministration does not have the right to increase the reported income from a taxpayer’s professional activity by examining the taxpayer’s business bank accounts during a tax assessment without first initiating an audit of the taxpayer’s accounting records.

The Court therefore ruled, in this specific case, that theadministration d not complied with this rule and that the proceedings were therefore invalid.

It overturns the tax assessment resulting from the review of the business bank account.

CAA Paris, July 31, 2026, No. 25PA00899

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