CMS Bureau Francis Lefebvre have obtained an important decision from the French Council of State (Conseil d’Etat) in relation to local authorities that benefit from the income generated by the tax on retail sales companies

CMS Bureau Francis Lefebvre, as advisor of the community of districts of Haut Val de Sèvre (Deux-Sèvres), has obtained an important decision from the French Council of State in relation to local authorities that benefit from the income generated by the tax on retail sales companies (TASCOM).

Indeed, the Finance Act of December 2009, in connection with the reform of the business tax, transferred the income from the TASCOM to territorial authorities as from January 2011. But it has also set up a scheme to cut back the allowances of said authorities, on the one hand, and to make deductions from their tax revenue receipts, on the other hand, to maintain the State’s receipts at an equivalent level for 2011. In consequence, the successive circulars of the French minister for the interior have renewed this scheme for future years.

CMS Bureau Francis Lefebvre has just obtained cancellation of the provisions of the circular of the minister for the interior of 5 April 2013, which renews said measures beyond the sole year of 2011 (Council of State, 16 July 2014, No. 369736).

The relevant authorities may thus, considering said decision, file an application to obtain the refund of amounts deducted from them for the years after 2011. However, said application must be filed at short term to avoid barring by limitations.

In this case, the community of district was advised by CMS Bureau Francis Lefebvre, with Stéphane Austry (partner), François Tenailleau (partner), Eloïse Turot and Sophie Weill for the aspects of constitutional law and of law of territorial authorities.