In the case of property taxes, the special right of objection can only be exercised up to December 31 of the year following the year of taxation.

In a recent postwe reported on the public rapporteur's conclusions to the 9e and 10e The Conseil d'Etat's combined chambers examined the appeal lodged by SVS La Martiniquaise concerning a novel procedural issue relating to property taxes.

With a decision no. 467 615 rendered on january 15, 2025the Conseil d'Etat confirms all the conclusions of its public rapporteur and considers thatin the case of property taxes, since the tax authorities' right of recovery can only be exercised up to the date of assessment, which under article 1416 of the French General Tax Code (CGI) is set for December 31 of the year following the year of taxation at the latest, the special right of complaint granted to the taxpayer under article R.* 196-3 of the French Tax Procedures Code (LPF) can only be exercised up to this date. As a result, the taxpayer can only contest a property tax assessment levied in the year of assessment up to December 31st of the following year, by virtue of the ordinary claim period provided for in article R.* 196-2 of the LPF and the special period provided for in article R.* 196-3 of the same Book.

Consequently, again according to the Conseil d'Etat, in ruling that the claim lodged on July 27, 2012 by SVS La Martiniquaise to obtain a reduction, on the one hand, of the primary assessment of property tax on built-up properties to which it was liable in respect of 2010 and which was assessed in 2010, and, on the other hand, of the additional assessment to which, within the recovery period provided for in article L. 173 of the LPF, it was liable in respect of the same year and assessed in 2011, was late insofar as it related to the primary assessment, and, consequently, inadmissible insofar as it related to the additional assessment. 173 of the LPF, she was liable for the same year and assessed in 2011, was late insofar as it related to the original assessment, and, consequently, inadmissible to that extent, the Administrative Court of Appeal did not err in law.

The dismissal of SVS La Martiniquaise's appeal is questionable, given that it deprives article R.* 196-3 of the LPF of any useful effect property tax (but also council tax).

In this respect, it should be remembered that according to the well-established case law of the High Administrative Jurisdiction, the act by which the Administration informs the taxpayer that the tax base has been raised interrupts the statute of limitations and, in accordance with article R.* 196-3 of the LPF, starts a new period of time against the tax assessment. primitives (CE, 9e and 10e ss-sect, October 13, 2000, no. 189,505, SA Marin ; See also CE, 9e and 10e ss-sect, July 4, 2001, no. 206 319, Sté civile Uracoop or CE, 9e and 10e ss-sect, April 25, 2003, no. 245 223, SNC Fapagau).

From the point of view legalIt is difficult to accept that article R.* 196-3 of the LPF should be rendered ineffective on the grounds - proposed by the public rapporteur and retained by the Conseil d'Etat in its ruling of January 15, 2025 - of combining article L. 173 of the LPF and article 1416 of the CGI. Furthermore, if a special time limit has been set by the legislator, the combination of general rules should not render it inapplicable.

Above all, from a practice, la solution adoptée – en tant qu’elle est fondée sur l’idée selon laquelle la prescription n’est interrompue ni par l’envoi d’une notification informant le contribuable de l’intention de l’Administration de l’assujettir à un supplément de taxe, ni par l’émission d’un rôle supplémentaire – risque de permettre que soit porté atteinte au droit au recours des contribuables.

En effet, il suffira à l’avenir, pour l’Administration, d’attendre la fin du mois de décembre de l’année qui suit l’imposition pour exercer son droit de reprise sans que le contribuable ne puisse exercer son droit de rétorsion à l’encontre de l’imposition primitive (certes, le contribuable pourra toujours demander à bénéficier de la compensation prévue par l’article L. 205 du LPF entre l’imposition supplémentaire et cette imposition primitive, alors même que le délai de réclamation contre cette dernière est expiré, mais il ne pourra le faire que dans la limite de l’imposition supplémentaire).

L’arrêt rendu par le Conseil d’Etat ce 15 janvier 2025 marque donc un recul en matière de taxes foncières (et de taxe d’habitation) par rapport à la jurisprudence SA Marin susvisée.

Would you like to discuss this point with one of our local tax experts?

Article written by:

Aymeric GIVORD - Local tax expert

A consultant since 2002, Aymeric has worked with renowned experts to develop case law in favor of taxpayers. With his teams, he is notably behind the Plénière fiscale ruling "SA GKN Driveline" (CE, December 11, 2020, n°422 418). He analyzes the taxation of industrial establishments, business premises and certain residential premises, proposing optimizations and assisting his clients with the necessary steps, including litigation.

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