France Administrative Supreme Court Issues Decision Clarifying Taxation of Mileage Allowances

The French Administrative Supreme Court Nov. 14 issued Decision No. 497065, clarifying the taxation of mileage allowances. The taxpayers consisted of a company, the sole shareholder and manager of the company, and her spouse. The married couple were assessed additional income tax and social security contributions after the tax authorities reintegrated excess mileage allowances into the company’s taxable results and treated them as distributed income. The taxpayers appealed, arguing that these allowances should be considered remuneration, not income distributions. On appeal, the Administrative Supreme Court found that: 1) mileage allowances generally constitute taxable remuneration linked to managerial duties under the ...