France Administrative Supreme Court Issues Decision Clarifying Corporate Income Tax Liability of Nonresident Entities

The French Administrative Supreme Court Nov. 12 issued Decision No. 502894, clarifying the corporate income tax liability of nonresident entities and the validity of ex officio assessments. The taxpayer, a U.S.-based limited liability company incorporated under California law, owned real estate in France. The taxpayer was assessed additional corporate income tax and penalties because it allowed others to use its property rent-free. The Marseille Administrative Court of Appeal annulled the initial judgment and granted tax relief. On appeal, the Administrative Supreme Court found that: 1) the taxpayer was comparable to a French simplified joint-stock company and, therefore, liable for corporate ...