France Administrative Supreme Court Issues Decision Clarifying Rules on Social Security Contributions, Distributed Income

The French Administrative Supreme Court Dec. 17 issued Decision No. 501452, clarifying the rules on social security contributions and distributed income under the General Tax Code. The taxpayers, French individuals who owned two companies, were assessed additional corporate income tax and social contributions following audits for 2014. The Paris Administrative Court of Appeal partially relieved the taxpayers of specific social contributions and penalties, but upheld other assessments. On appeal by both parties, the Administrative Supreme Court found that: 1) the Court of Appeal erred in canceling social contributions linked to the 1.25 coefficient, given that the coefficient was never applied; ...