Tax Audit Procedure

The French High Court (Conseil d'Etat, December 6, 1995) has considered that the fact that some of the elements/documents seized at the time of an audit as regards the economic legislation and transmitted to the Tax Authorities by the Legal Authorities be later on declared null and void by the penal judge has no influence on the regularity of the practice of the Administration's right of communication. This fact does not deprive the Administration either of its rights to take advantage of these documents to draw up the taxations.

This decision of the French High Court, pronounced contrary to the Government Commissioner's conclusions gives the advantage to a strict application of the principle of independence of the tax and penal procedures.