Key points
- An appeal before the Administrative Court of Appeal (cour administrative d’appel) is the ordinary remedy against a judgment of the Administrative Court (tribunal administratif) in tax matters.
- It may be lodged by a taxpayer who lost at first instance as well as by the tax authorities challenging an unfavourable judgment.
- The appeal must be lodged within a strict time limit of two months from notification of the judgment, failing which the judgment becomes final.
- On appeal, the dispute is examined again: the parties may repeat their arguments and put forward new grounds or documents not examined at first instance.
- Representation by a lawyer is mandatory for the taxpayer, while the State is exempt; the proceedings may last several years and the appeal does not, in principle, suspend enforcement, which must be factored into cash-flow planning.
When the Administrative Court has ruled on a tax dispute and one of the parties wishes to challenge that judgment, an appeal before the Administrative Court of Appeal (CAA) is the ordinary remedy. This appeal may be lodged both by a taxpayer who lost in part or in full at first instance and by the tax authorities when they wish to challenge a judgment that went against them.
What is the time limit for a tax appeal?
The appeal must be lodged within two months from notification of the Administrative Court’s judgment (Article R. 811-2 of the French Code of Administrative Justice (code de justice administrative) (in French)). This time limit is strict. Once it has expired, the judgment is final and can no longer be challenged by way of an ordinary appeal.
Which Administrative Court of Appeal has jurisdiction?
Administrative Courts of Appeal have jurisdiction to rule on appeals against judgments of Administrative Courts in tax matters. The competent court is the one within whose territorial jurisdiction the Administrative Court that delivered the contested judgment has its seat (Article R. 322-1 of the Code of Administrative Justice (in French)). A notable exception: the Administrative Court rules at first and last instance on disputes relating to local taxes, other than the territorial economic contribution (contribution économique territoriale) (Article R. 811-1 of the Code of Administrative Justice (in French)); its judgment then cannot be appealed.
Grounds of appeal
On appeal, the dispute is examined again by a higher court. The parties may repeat their arguments from first instance. The tax authorities and the taxpayer, the latter within the limit of the relief or refund claimed, may also raise any new ground until the investigation of the case is closed (clôture de l’instruction) (Article L. 199 C of the French Tax Procedure Code (livre des procédures fiscales) (in French)) and produce new supporting documents. The appeal strategy must take into account both the reasons given in the first-instance judgment (to criticise them effectively) and the arguments likely to persuade the court to decide differently.
Is a lawyer mandatory for a tax appeal?
In tax matters before the Administrative Court of Appeal, the taxpayer’s application and written submissions must be filed by a lawyer, failing which they are inadmissible (Article R. 811-7 of the Code of Administrative Justice (in French)). The State, for its part, is exempt from representation by a lawyer (Article R. 811-10 of the same code (in French)). A tax lawyer familiar with the case law of the Administrative Courts of Appeal structures the appeal submissions in light of the reasons for the judgment and what is at stake in the case.
How long does a tax appeal take?
Proceedings before the Administrative Court of Appeal may last several years, depending on the courts’ workload and the complexity of the case. This duration must be anticipated for cash-flow management: unless the appeal court decides otherwise, the appeal has no suspensive effect (Article R. 811-14 of the Code of Administrative Justice (in French)), and the scope of any deferral of payment (sursis de paiement) obtained under Article L. 277 of the Tax Procedure Code (in French) must be checked as soon as the first-instance judgment is delivered.
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