Allocations of land and buildings: a risky issue

21 DECEMBER 2016

Allocations of land & buildings: a risky issue

As the year end approaches, now is a good moment to reconsider the above question, which was the subject of two important rulings in 2016 (Conseil d’Etat rulings nos. 367467 SARL Daves and 380400 LG Services of 15 February 2016) followed by a recent report issued by AFREXIM (the French Association of Property Valuation Firms).  

Imputation of land losses: .....

25 NOVEMBER 2016

Charging of losses on land: the prerogative of the usufructuary or of the bare owner?  

In 2016, we have seen a number of decisions concerning the use of dividing up the ownership – which under French law consists of splitting full ownership of an asset into 2 distinct rights: usufruct and bare ownership – of shares in an SCI (société civile immobilière, real estate partnership).  

Contribution of temporary usufruct of shares in an SCI...

25 NOVEMBER 2016

Contribution of temporary usufruct of shares in an SCI subject to Income Tax (IT) to a company subject to Corporate Income Tax (CIT): an abuse of law?  

Among the clarifications made in 2016 concerning the dividing-up of shares of SCI, the Committee of Abuse of Tax Law decided by a Notice of 13 June 2016, on the abusive or not abusive nature of a contribution of the temporary usufruct of the shares of an SCI (IT) to a company subject to CIT.

The regime governing property dealers...


The regime governing property dealers and the partial non-observance of the commitment to resell: still not too late to claim a refund or request an adjustment!  

Pursuant to article 1115 of the French Tax Code (FTC), the acquisition of properties by a taxable person subject to VAT, made with a commitment to resell within five years, will be subject to registration fees at a rate of 0.715% instead of 5.80% (or 6.40% in the Ile-de-France region).

Should this commitment to resell not be met, the purchaser must pay the difference in fees, plus late-payment interest at a rate of 4.80% per annum (article 1840 G ter of the FTC). 

The Lupa ruling: new tax uncertainty...

26 JULY 2016

The Lupa ruling: new tax uncertainty regarding sales of real estate companies!  

The subject is a quite difficult one as it involves the application of the Quémener ruling1 to restructuring operations carried out after the acquisition of an SCI [société civile immobilière, real estate partnership] (or an SNC [société en nom collectif, partnership]) that is not subject to Corporate Income Tax (CIT) where there is a deferred capital gain on the real estate assets it owns.