Our retail client, who owns a logistics warehouse, has been hit with an annual CFE and property tax reassessment of €480,000.
405 000 €
secured annual savings
85%
to reduce the impact of the tax reassessment
6 years
impacted by our security
The initial challenge: an adjustment in rental value
The French tax authorities noted the presence of a partner subject to corporation tax in a SCI holding a logistics warehouse, triggering the application of article 1500 of the French General Tax Code (CGI). This particularity led to the application of the accounting valuation method, resulting in an explosion of the rental value of the warehouse and, consequently, a tax adjustment CFE and property tax.
The challenge was to challenge and secure the situation in the face of this increase in rental value.
Our concrete action
Our mission was to turn risk into legal leverage. The experts at GAC Group have implemented a dual strategy of security tax :
Restatement of fixed assets : we proceeded to the tax restatement of fixed assets to exclude from the tax base all those that were not genuinely liable for CFE and property tax.
Smoothing mechanism : we requested the application of the’article 1518 A sexies du CGI. This legal mechanism has smoothed out the massive increase in rental value over a 6-year period.
Result: reduction in CFE and property tax adjustments
The rigorous application of these levers has had an measured impact spectacular, transforming an annual cost of 480 000 € into an annual charge of just 75 000 €.
Reduction in CFE : of 200 000 € at 30 000 €
Property tax reduction : of 280 000 € at 45 000 €
This action generated sustainable annual savings of 405 000 € for our customer in the grande distribution, while ensuring full tax compliance.
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Call on our local tax experts
When faced with a CFE tax reassessment or a problem of securing warehouse tax, only the detail counts. G.A.C. Group experts are able to identify and activate all legal levers, including article 1518 A sexies, to secure your interests.
