Reason for social security contributions: a fatal clerical error

A real estate agent was subject to a tax audit of his business as well as a tax audit of his personal finances.

Following these tax audits,administration determined that he was subject to a tax assessment regarding:

• income from securities

• income of unknown origin

In the reassessment proposal,administration had stated that income of undetermined origin was subject to social security contributions, but they had not provided any details regarding income from movable capital.

Yet she had sent a tax bill social security contributions on her total income.

Before the Court, the taxpayer challenged the validity of the reassessment proposal. He argued that it was not sufficiently substantiated because it did not specify that certain types of income were subject to social security contributions.

The tax authorities argued before the court that this was a clerical error on the part of the tax inspector who drafted the reassessment proposal that the taxpayer was aware that he had been reassessed for social security contributions on his total income based on the figures provided.

The Administrative Court of Appeal notes, however, that "the fact that the taxpayer could have determined that social security contributions were not based solely on his income of undetermined origin by verifying the bases indicated in the reassessment proposal sufficient to remedy, given the terms in which that reassessment proposal drafted, the lack of justification therein regarding their application to income from movable capital."

It therefore revokes the tax adjustment for social security contributions on this income.

CAA Nancy, April 24, 2025, No. 22NC02775

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