When a jockey isn't very strict about his tax returns
A taxpayer who worked as a jockey was subject to a tax audit, following whichadministration determined that his activity was indeed taxable. They therefore sent him a reassessment proposal that his failure to report this income constituted a hidden activity.
In his defense, the jockey initially argued that, under the tax treaty with Italy, he should not be subject to taxation in France. He contended that“his family and social circle were located exclusively in Italy”and that this was therefore the center of his vital interests, which served as the basis for determining his tax residence.
The Council of State, however, upheld the ruling of the Administrative Court of Appeal, which had determined that the center of vital interests was in France on the grounds that:
“He kept most of his income and assets there, including real estate”;
“He had spent most of his professional career there, becoming particularly involved in the French horse racing scene”;
“This activity had allowed him to build many social and friendly relationships in France.”
The jockey also attempted to challenge the application of the statute of limitations applicable to undeclared income by arguing that he had made an honest mistake in failing to file his tax returns in France.
The Council of State will, however, note that:
The jockey had a financial incentive to report his income in Italy because the tax base was lower there;
The decision to waive the 80% surcharges applicable in cases of undeclared work following an appeal through the chain of command does not constitute an error made in good faith.
Finally, the taxpayer sought tax credits for withholding taxes applied to income he had received in Hong Kong. The Council of State nevertheless upheld the ruling of the Administrative Court of Appeal, stating that“no definite correspondence could be established between this income and that listed in the proposed assessments notified to him byadministration Frenchadministration .”
This confirms the jockey's recovery.
ECJ, 9th Chamber, July 16, 2025, Case No. 495668, unpublished
This monitoring service is provided by Mispelon Avocat, a law firm specializing in tax audits and tax litigation. You can stay updated by subscribing to the newsletter via this link.