Whenadministration a capital gain on real estate and send the bill to the wrong taxpayer

An SCI subject to income tax sold an apartment in Paris and believed that the capital gain realized on the sale was tax-exempt.

Following a tax audit,administration the application of this exemption. Believing that tax should have been paid, they then issued a tax bill name of the SCI.

The company then challenged the adjustment in court.

The Administrative Court of Appeal will then point out that it is the partners who are liable for tax on the income earned by SCIs that are not subject to corporate income tax.

In principle, under these circumstances, it is the SCI’s responsibility to pay the tax on the capital gains realized by the partners. The court clarifies, however, that this does not entitleadministration to claim the tax from the SCI if the tax paid by the SCI on behalf of the partners was insufficient.

Under these circumstances,administration required to collect the tax not from the company but from the partners.

Therefore,tax bill in the name of the SCI rather than in the name of the partners is invalid.

The tax assessment is therefore rescinded.

CAA Paris, May 5, 2026, No. 24PA04623

This legal watch produced by Mispelon Avocat, a law firm specializing in French tax audit and French tax litigation. You can follow this legal watch subscribing to the newsletter via this link.