France Administrative Court of Appeal of Paris Clarifies Deductibility of Inventory Depreciation Provisions

The Administrative Court of Appeal of Paris May 18 issued Decision No. 24PA04716, clarifying the deductibility of inventory depreciation provisions. The taxpayer, a simplified joint stock company that sold spare parts, sought discharge of additional corporate income tax and penalties that were assessed following an audit. The assessment resulted from the tax authorities’ rejection of the specified provisions claimed for inventory depreciation. The Administrative Court of Melun dismissed the taxpayer’s claim. On appeal, the Administrative Court of Appeal of Paris found that: 1) the taxpayer’s method, which was based on standardized depreciation rates linked to stock holding periods, didn’t adequately ...