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This chapter is not exhaustive and is limited to broadly outline the tax consequences of the main events occurring when doing business in France. It does not constitute a tax advice or a client - attorney relationship. Materials are not suitable for tax analysis. Visitors are invited to consult a tax lawyer before taking any decision.
 Directorate contact
District commission
Appeal
Ex officio procedure
Respite of tax collection
 Directorate contact
In case of difficulties, misunderstanding or unfair treatment at any time during the audit and before the notice of collection of tax assessments, the tax payer has the legal right to meet with the supervisor of the auditor and if needed, in a second step, the directorate contact. The name, the address and the phone number of these two people are mentioned on the notice of audit.
District commission
If the taxpayer and the tax authorities disagree on the facts giving ground for a tax assessment, each party is entitled to refer the matter to the relevant district commission.
Until December 31, 2004, the district commission was only qualified to consider the facts only, not the law.
For tax assessments received on January 1st, 2005 onward, the jurisdiction of the District tax commissions will also cover the facts necessary to analyze legal issues as well as tax rebate and tax exemptions in favor of new companies.
The district commission delivers non binding opinions.
Appeal
Appeal procedures are opened to taxpayers who disagree with the application of the law and/or regulations, the understanding of the facts and/or the computation made by the tax authorities to assess a tax. In a first step the taxpayer must file a claim before the tax authorities.
The form and the delay of the appeal are strictly regulated. Should he considers the answer from the tax authorities non satisfactory or should the answer has been issued after a 6-month period, the taxpayer can seize directly the relevant lower court within 2 months. Upon request, the payment of the tax assessments plus late interest and penalties may be deferred until the lower court judges the case.
Important:
Since 2003 it is possible to introduce a claim against tax assessments which reduce tax losses without generating current tax payment. French tax authorities indicated that such claim had to be introduced within two years of the period starting , as applicable, the day of reception of the answers to the comments of the taxpayer, the opinion of the district tax commission (Commission départementale) or 30 days after the reception of the notice of assessment when the procedure of "taxation d'office" applies. In a guideline 13 O-1-06 dated August 10, 2006 complying with the opinion of the French Supreme Administrative Court dated July 2005, French tax authorities recognize that the claim mentioned above may be introduced as long as the related losses may be used.
The tax authorities and the tax payer may lodge an appeal to reverse the judgment of the lower court. The decision of the court of appeal can be lodged at the Supreme Court if the conditions are met.
As of September 1st, 2003, it is now mandatory to use a lawyer to lodge an appeal before the administrative court.
In case of appeal it is important to remember that European law supersedes French law.
Ex officio procedure
The ex officio procedure can be used to reduce a tax assessment or penalties when there is no disagreement with the application of the law and regulations, the understanding of the facts and/or the computation made by the tax authorities to assess a tax. The procedure to file the request is very informal. If the amount of tax at stake is material, the tax authorities will decide after hearing the non binding opinion of the ex officio comity.
Finance law for 2004 authorizes the French tax authorities to modulate the late payment interest (0,75% per month) as part of an ex officio procedure.
Respite of tax collection
It is possible to delay the collection of additional tax assessed during a tax audit by requesting a respite of tax collection as part of claim. However it happens that the tax collector already proceed to a seizure or an attachment or denies the respite due to insufficient guaranties. In both cases it is possible to successfully obtain from the tax court the stoppage of payment by using the procedure called "référé suspension".
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