When a doctor tries to figure out the value of a 4,600-euro watch given to his secretary

A company where a doctor works was subject to a tax audit, during which the taxadministration noted that the company had, among other things, deducted a gift worth 4,600 euros in its accounting records.

The taxadministration sion questioned the deductibility of this expense, and the company challenged the tax assessment all the way to the Administrative Court of Appeals.

The Court then noted that, to justify the deductibility of the expense, the company had submitted a credit card receipt during the tax audit bearing the notation“secretarial gift,” and that the doctor had specified during the proceedings—according to the Court—that the“expense was intended to thank an employee for her exceptional dedication to the management of the practice.”

In addition, a statement from the cabinet secretary was presented in court in which she stated that she had received “a watch worth 4,600 euros as a token of appreciation for her work.”

The Court will note, however, that no invoice in the company's name was produced to prove that the company had actually paid for this watch.

It therefore confirms the tax assessment in this regard.

CAA Douai, Sept. 28, 2026, No. 25DA01235

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