When a business cannot be used as collateral for tax debt

A company was subject to a tax assessment and contested it. To avoid having to pay the assessment immediately, it requested a payment deferral under Article L.277 of the Code of Tax Procedures.

In order to qualify for this, she had to provide a guarantee in the amount of 113,780 euros. 

She offered her business as collateral, which had been appraised:

• at 186,944 euros, as determined by a lawyer who calculated the average of the values obtained using the goodwill, revenue, and profit methods;

• between 310,000 and 480,000 euros by an accounting firm.

However,administration this guarantee. The company challenged this refusal in court.

The Administrative Court of Appeals then noted that:

• the company does not have any commercial premises;

• The company's website consists solely of a landing page and lists the address of the manager's former place of business;

• The company reported revenue of approximately €1.5 million for 2024, but more than half of its revenue comes from subcontracting;

• The company's business contracted in 2025, with first-half revenue of just under 500,000 euros;

• The tax audit of the company revealed the existence of fictitious invoices and undisclosed payments.

It therefore concluded thatthe company’s“customer base” had not been established and that the pledge of its business assets did not constitute sufficient collateral, even though the company owned operating assets, namely two vehicles and a storage lot.

The appeal against the denial of a stay of payment is dismissed.

CAA Lyon, Sept. 18, 2025, No. 25LY02264

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