3% tax: Filing returns nullifies the procedural effect of the undertaking to disclose

A foreign company that owned real estate in France was therefore subject to a 3% tax on the market value of that property.

In 2004, the company had agreed to provideadministration , upon request, with the information necessary to avoid being subject to this tax.

She subsequently submitted tax returns for the years 2006 through 2012 on her own initiative, indicating that the shares were held by a number of individuals.

Following a tax audit,administration that, contrary to the company’s statements, it was not owned by individuals but by a corporation.

Theadministration thenadministration a reassessment proposal claim the 3% tax.

The company believed that this procedure was improper becauseadministration followed the procedure established for cases where a company has committed to providing information, which includes, among other things, the issuance of formal notices.

The Court of Cassation, to which the case was referred, ruled that in order to be exempt from the tax, companies may either commit to providing information or submit the required information.

She believes that choosing one exemption option precludes the other.

It therefore held that, in this particular case, since the company had voluntarily disclosed the information, it could not demand the application of the procedure applicable to companies that had undertaken to provide such information.

The tax assessment is therefore confirmed.

Court of Cassation, Commercial Division, April 1, 2026, No. 25-10.605, Published

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