France Administrative Court of Appeal Clarifies Deductibility of Mileage Allowances, Luxury Car Rental Expenses

The French Administrative Court of Appeal of Nancy Nov. 13 issued Decision No. 23NC03832, clarifying the deductibility of mileage allowances and luxury car rental expenses. The taxpayer, a perfume packaging company, sought to discharge additional corporate income tax assessed for 2015-2017 after the tax authorities reintegrated mileage allowances and vehicle rental expenses for racing events. The Strasbourg Administrative Court denied the discharge request. The taxpayer argued that the claimed expenses were legitimate business expenses. On appeal, the Administrative Court of Appeal of Nancy found that: 1) the taxpayer failed to provide sufficiently probative and consistent evidence to justify the deduction ...