Jean-Marc Valot analyzed a recent ruling by the Nancy Administrative Court of Appeal on the subject of taxation and business transfers.
When a seller grants a vendor credit, he is taxed on the capital gain even if the price has not been paid in full. But can he obtain a review of his tax liability in the event of non-payment?
In this ruling, the Nancy Administrative Court of Appeal denied this possibility, holding that a transactional protocol aimed at settling a payment dispute did not constitute a reconsideration of the initial sale, or even a revision of the price. This decision underlines the importance of ensuring that transfer contracts are properly drafted..