France Administrative Court of Appeal Clarifies Application of Monetary Erosion Coefficient to Deferred Capital Gains

The French Administrative Court of Appeal of Paris May 18 issued Decision No. 24PA02866, clarifying the application of the monetary erosion coefficient to deferred capital gains. The taxpayers, a married couple, sought a reduction in 2015 income tax and exceptional high-income tax contributions, arguing that the coefficient should apply to capital gains. On appeal, the Administrative Court of Appeal of Paris found that: 1) the coefficient applied to the acquisition value of the specified securities, reflected the period between acquisition and realization, and didn’t apply to the deferred capital gains; 2) the application of the coefficient to the acquisition value ...