Abnormal Act Of Management

On May 20, 2015, the Conseil d'Etat decided in favor of the taxpayer in a situation in which the FTA argued that the taxpayer had committed a so-called "abnormal act of management" by not charging more administrative fees to its clients.

The taxpayer, which was providing certain ground services to its clients within an airport, was charging, inter alia, administrative fees to them, for amounts ranging from 0 percent to 15 percent of the underlying service fees. The FTA was of the view that the taxpayer should have charged 15 percent across the board.

The Conseil d'Etat took the view that the invoicing of the administrative fees, including discounts applied to certain clients, was a basic management decision that may not be, as such, challenged by the FTA. For example, the taxpayer may decide to charge lower administrative fees to clients, generating a higher turnover, without being validly challenged by the FTA.