Can payments to a strike fund be considered sponsorship?
An association that manages a strike fund had filed a request for a ruling withadministration determine whether the donations it received would entitle the donors to a tax credit or a tax deduction.
Sinceadministration determined that the association did not meet the requirements for donors to qualify for the tax benefit, the association challenged this decision in the administrative courts.
The Administrative Court of Appeal first noted that the eligibility criteria for financial assistance provided by the association to employees were limited to the requirement that the employees had participated in "at least two consecutive days of strike action and had gone on strike in opposition to a proposed law or a proposed national inter-professional agreement."
The court therefore finds that the association does not take the financial situation of the aid applicant into account when granting aid, and that this activity cannot therefore be considered to be of a social or humanitarian nature.
The Administrative Court of Appeals also ruled on the association’s argument that, in addition to its role as a strike fund, it also carried out social activities.
The Court will note that:
Simply issuing a press release stating that financial assistance was provided to employees is not sufficient to prove the existence of a social activity, as it is impossible to determine whether the assistance was provided because of discrimination or because the employees were participating in a strike;
the posting of a questionnaire for donors, the summary of the information collected through this questionnaire, a document titled "Strike Updates," or the organization of a public meeting on the actions taken does not demonstrate that the association "established a strike monitoring center and carried out awareness-raising activities among the public and authorities regarding the effective exercise of the right to strike and the fight against discrimination."
The Court therefore finds that the social nature of the association's activities has not been demonstrated.
She believes thatadministration therefore conclude that donations to the association did not qualify for a tax credit or deduction.
CAA Paris, Sept. 25, 2025, No. 23PA05262
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