SAS and the IR: A Ministerial Response to Be Challenged Before the Council of State

On June 2, a ministerial response was published clarifying theadministration position regarding the application of social security contributions for taxpayers who own an SAS that has opted for income tax.

In this response,administration the reasoning that led it to conclude that social security contributions on investment income apply to the partners of these companies.

This position, which has led to a myriad of tax assessments, appears questionable in several respects.

Under certain conditions, ministerial responses may be challenged before the Conseil d'Etat on the grounds of abuse of power.

Such an appeal seems appropriate because it would likely provide, within about a year, the Supreme Court’s ruling on the position expressed byadministration the ministerial response.

Since our firm is currently handling a case involving such a dispute, please feel free to contact us if you would like to discuss the matter or join this legal action.

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.