Under the French Tax Code, taxpayers have a period in which to lodge a claim equal to the period within which the tax authorities may recover or rectify the tax (i.e. three years for CFE and one year for TF, from the date of assessment of the tax roll).
This so-called "special" period derogates from the general period for lodging complaints applicable to local taxes, which is very short, since it does not allow the taxpayer to go back further than year N-1 (thus, in 2024, the taxpayer cannot, in principle, contest taxes levied prior to 2023).
Here's an example to help you understand:
In 2022In France, the tax authorities notify a taxpayer of a proposed adjustment for CFE 2019 to 2022 (adjustment for 2019, 2020 and 2021 and update of the 2022 assessment) and for TF 2021 and 2022 (adjustment for 2021 and update of the 2022 assessment).
By virtue of his special claim period, this taxpayer will be able to contest in 2024 (and until December 31, 2025) the 2019 to 2022 CFEs (note that he could also have contested until December 31, 2024 an adjustment notified in 2021 in respect of the 2018 to 2021 CFEs).
In addition, by virtue of his general claim period, he will also be able to contest his 2023 CFE until December 31, 2024.
In principle, he will no longer be able to contest the TF 2021 and 2022 once his special claim period has expired on December 31, 2023. However, if the supplementary rolls for TF 2021 and 2022 were assessed in 2023, the taxpayer will be able to contest them until December 31, 2024 (this time, by virtue of his general claim period).
Better still, the Conseil d'Etat allows a taxpayer who benefits from the special period for lodging a claim to contest not only the adjusted tax assessment, but also the original tax assessment. As a result, a taxpayer who is notified of an adjustment of €10,000 on an initial TF of €100,000 will be able to invoke grounds for contestation on a perimeter of €110,000 (and this, even if his grounds for contestation differ from those invoked by the Administration during its audit).
Year of notification of adjustment | CFE adjustments | Restated TFs* (in euros) | Deadline for implementation of the special claim period for rectified CFEs | Deadline for implementation of the special claim period for rectified TFs | Special case: deadline for implementation of the general deadline for complaints by rectified TFs |
2021 | 2018-2021 | 2020-2021 | 31/12/2024 | 31/12/2022 | Possibility of contesting the TF 2021 reassessment until 12/31/2023 if the supplementary roll is assessed in 2022 |
2022 | 2019-2022 | 2021-2022 | 31/12/2025 | 31/12/2023 | Possibility of contesting the TF 2022 reassessment until 12/31/2024 if the supplementary roll is assessed in 2023. |
2023 | 2020-2023 | 2022-2023 | 31/12/2026 | 31/12/2024 | Possibility of contesting the TF 2023 reassessment until 12/31/2025 if the supplementary roll is assessed in 2024 |
2024 | 2021-2024 | 2023-2024 | 31/12/2027 | 31/12/2025 | Possibility of contesting the TF 2024 reassessment until 12/31/2026 if the supplementary roll is assessed in 2025 |
Etc. | Etc. | Etc. | Etc. | Etc. | Etc. |
* Excluding implementation of the "special role" procedure. | |||||
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Article written by:
Aymeric GIVORD - Local tax expert at G.A.C. Group
A local tax consultant since 2002, Aymeric has been working for over 15 years with eminent lawyers and associate professors, with a view to developing case law in a way that is favorable to taxpayers. With his teams, he is notably behind the Plénière fiscale ruling "SA GKN Driveline" (CE, December 11, 2020, n° 422 418) as well as the landmark decision in favor of SAS Rousseau (CE, April 5, 2022, n° 448 710). Its day-to-day work consists of analyzing the tax bases of industrial establishments, business premises and certain residential premises owned and/or operated by companies or certain organizations, in order to make recommendations and identify potential optimizations, and to support them in implementing these actions, particularly in the event of legal disputes.
Our tax consultants offer support throughout your real estate and restructuring investments (assistance with tax returns, budgeting, development tax, archaeological tax, etc.) to ensure that your local taxes are secure. You need solid, reliable cash management to enable your business to grow: our financial performance division, made up of tax consultants backed by expert lawyers, is dedicated to securing your tax environment through a high level of expertise and personalized support.
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