France Administrative Court of Appeal of Nantes Clarifies Tax Deductibility of Eviction Indemnities

The French Administrative Court of Appeal of Nantes Feb. 10 issued Decision No. 25NT01023, clarifying the deductibility of eviction indemnities for corporate tax purposes. The taxpayer, a company that paid substantial compensation to two occupants in connection with the sale of an office building, sought discharge of additional corporate income tax and penalties, arguing that the payments constituted justified eviction indemnities under commercial lease rules. On appeal, the Administrative Court of Appeal of Nantes found that: 1) the eviction indemnities weren’t deductible because the taxpayer failed to justify the nature, business interest, and proportionality of the expenses; 2) one tenant ...