Litigation before the administrative court
When the disagreement persists after the adversarial phase, the dispute is brought before the tax judge. But one step is mandatory before any trial: the prior claim, within deadlines that must not be missed. The firm secures this chain, from the claim through to the hearing, and where applicable on appeal and in cassation.
- Prerequisite
- Mandatory litigation claim to the tax authorities (LPF art. L. 190)
- Deadline
- Until 31 December of the 2nd year following collection (LPF art. R*196-1)
- Payment
- Payment deferral possible (LPF art. L. 277); the suspensive effect ends when the first-instance judgment is served and covers neither appeal nor cassation
- Judge
- Administrative court (income tax, corporate tax, VAT); judicial court (registration duties, IFI)
- Referral
- Two months after the rejection decision (LPF art. R*199-1)
The prior claim, a mandatory step
You cannot refer a matter directly to the tax judge: you must first file a litigation claim with the tax authorities (LPF art. L. 190, which defines its scope, together with art. R. 190-1). This claim sets out the grounds of the challenge, quantifies the relief sought and is accompanied by the relevant supporting documents.
The tax authorities have a period within which to reply. Their rejection, whether express or implied, opens the way to the court. It is therefore a substantive step, not a mere formality: the quality of the claim shapes what follows.
Payment deferral
Challenging an assessment does not, in principle, relieve you of the obligation to pay. To suspend collection of the contested amounts, the claim must include a request for payment deferral (LPF art. L. 277). Where the contested duties exceed €4,500, guarantees are required (surety, mortgage, pledge); below that threshold, you are exempt (LPF art. R. 277-7).
Its duration is limited. Enforceability of the debt and the limitation period of the collection action are suspended until a final decision has been taken on the claim, either by the tax authorities or by the competent court (LPF art. L. 277, second paragraph): that is, until the deadline for bringing the matter before the court expires after service of the rejection, then, if the court is seised, until service of its judgment. The suspensive effect extends neither to the appeal nor to the cassation appeal: the judgment makes the assessments it has not discharged enforceable again (BOI-REC-PREA-20-20-40, § 40). The same applies before the judicial court, the suspensive effect not surviving the first-instance judgment.
Once the judgment has been served, no fresh request for payment deferral is available on appeal, and the appeal does not suspend collection. The Conseil d’État has held that a judgment dismissing a claim for discharge or reduction does not in itself entail any enforcement measure, so that a stay of its execution cannot be sought (CE, 12 January 2005, no. 254590; BOI-CTX-DG-20-70-30, § 150). As the formal notice to pay issued before the deferral has lapsed, the public accountant must serve a fresh one before taking enforcement action (BOI-REC-PREA-20-20-40, §§ 70 and 80).
Used correctly, the deferral avoids having to disburse a contested reassessment before the first-instance judge has ruled. The cash outflow, or a substitute guarantee, must therefore be anticipated for the date of the judgment.
From the court to the Conseil d’État
Where the claim is rejected, the dispute is brought before the court with jurisdiction according to the tax (LPF art. L. 199):
- Administrative court for income tax, corporate tax and VAT;
- Judicial court for registration duties and IFI;
- Appeal before the administrative court of appeal (or the court of appeal);
- Cassation before the Conseil d’État (or the Cour de cassation).
At every level, the written submissions prevail: the drafting of the briefs and the choice of grounds determine the outcome. The firm conducts the procedure and argues the case.
Tax litigation: the key deadlines
| Step | Deadline | Source |
|---|---|---|
| Claim (general rule) | until 31 December of the 2nd year following collection | LPF art. R. 196-1 |
| Claim, special deadline after adjustment | until 31 December of the 3rd year following the adjustment notice | LPF art. R. 196-3 |
| Reply of the tax authorities | 6 months, extendable by 3 months | LPF art. R. 198-10 |
| Referral to the court | 2 months after notification of an express rejection (silence does not start this time limit running) | LPF art. R. 199-1 |
| Deferral: duration of the suspensive effect | until service of the first-instance judgment; neither the appeal nor the cassation appeal is covered, the judgment making the assessments it has not discharged enforceable again | LPF, art. L. 277, second para.; BOI-REC-PREA-20-20-40, § 40 |
| Deferral: guarantee threshold | guarantees required if contested duties > €4,500 | LPF art. R. 277-7 |
| Appeal (administrative court of appeal) | 2 months | CJA art. R. 811-2 |
| Cassation (Conseil d’État) | 2 months | CJA art. R. 821-1 |
Which judge for which tax?
| Tax | First instance | Appeal | Cassation |
|---|---|---|---|
| Income tax, corporate tax, VAT | Administrative court | Administrative court of appeal | Conseil d’État |
| Registration duties, IFI, stamp duty, indirect contributions | Judicial court | Court of appeal | Cour de cassation |
Source: LPF art. L. 199.
Deadlines not to be missed
Tax litigation is paced by strict deadlines. The time limit to file a claim runs, in principle, until 31 December of the second year following that of collection (LPF art. R. 196-1). Where an adjustment notice has been issued, you have a special time limit equal to the tax authorities’ reassessment period, that is, for income tax and corporate tax, until 31 December of the third year following the notice (LPF art. R. 196-3).
The tax authorities have six months to rule, extendable by three months (LPF art. R. 198-10). As long as no express rejection decision is notified, the two-month time limit to refer the matter to the court does not run (LPF art. R. 199-1): the prolonged silence of the tax authorities causes you to lose no right. Both the appeal and the cassation petition are then exercised within a two-month time limit.
Tax litigation: your questions
Can you refer a matter directly to the court?
No. A prior litigation claim addressed to the tax authorities is mandatory (LPF art. L. 190). Only after its rejection, whether express or implied, may the court be seised.
What is the deadline to file a claim?
In principle until 31 December of the second year following the collection or the payment of the contested tax (LPF art. R*196-1). Special deadlines exist depending on the situation.
Must I pay during the challenge?
The claim may include a request for payment deferral (LPF art. L. 277), which suspends collection of the contested amounts, against guarantees above EUR 4,500 of contested duties (LPF art. R. 277-7). Mind the duration: enforceability and the limitation period of the collection action are suspended only until a final decision has been taken on the claim, either by the tax authorities or by the competent court (LPF art. L. 277, second paragraph). The suspensive effect ends when the first-instance judgment is served and extends neither to the appeal nor to the cassation appeal: the judgment makes the assessments it has not discharged enforceable again (BOI-REC-PREA-20-20-40, § 40). No fresh request for payment deferral is available on appeal, and the appeal does not suspend collection: the cash outflow must be anticipated for the date of the first-instance judgment.
Which court has jurisdiction?
The administrative court for income tax, corporate tax and VAT; the judicial court for registration duties and IFI (LPF art. L. 199).
How far can the procedure go?
From the court to the administrative court of appeal, then to the Conseil d’État in cassation (or, in the judicial order, to the court of appeal then to the Cour de cassation). The firm supports the case at every level.
A court action to bring? Let us secure the deadlines
A confidential initial consultation to structure the claim, request the payment deferral and bring the dispute before the tax judge.
This page presents the avenues of appeal for information purposes; each case calls for a specific analysis and compliance with strict deadlines. References to the French Tax Procedures Code (Livre des procédures fiscales) in force at the date of writing.