A ruling handed down by the ECtHR on 7 December 2023 appears to give taxpayers the opportunity to challenge the surcharge applied to their professional income for non-membership of an approved management body (OGA in France).
Lobe Law can assist taxpayers in carrying out an audit of their situation in the light of this ruling and, if necessary, contest their income tax with the appropriate tax office.
Please feel free to contact us.
Background
Membership of an approved management body (OGA in France) is not subject to tax.
However, until now, taxpayers who were not members of an OGA had to pay an additional 25% tax on their professional income.
Members of an OGA, on the other hand, are exempt from this surcharge.
In the Waldner versus France ruling, the European Court of Human Rights (ECtHR) challenged the tax authorities' assessment of a lawyer's taxable income on the grounds that he was not a member of an approved management association (AGA in France).
Violation of the European Convention on Human Rights (ECHR)
In this decision, the ECtHR found that the surcharge for non-membership of an AGA applied to the applicant's professional income earned between 2006 and 2011 violated Article 1 of Protocol No. 1 of the ECHR insofar as it resulted in a disproportionate financial burden for the applicant.
The reasoning adopted by the ECtHR should, in our view, be transposed to all non-salaried professional income earned by taxpayers subject to a real taxation system, such as industrial and commercial profits, non-commercial profits or agricultural profits.
Claim opportunities extended to 2020
Taxpayers whose taxable income has been increased because they have not joined an OGA (including AGAs and CGAs) now appear to have the option of filing a claim with their tax centre.
As income tax claims are generally admissible until 31 December of the third year following the taxation year, taxpayers therefore have until 31 December 2023 to take any action in respect of 2020.