New French "CODE DES RELATIONS ENTRE LE PUBLIC ET
L'ADMINISTRATION" : note the Recours hiérarchique suspending a
procedure, and confirmation that a lack of response from the
administration within two months can constitute tacit
acceptance.
Trustees of foreign trusts with French connections, and their
clients might find this of great assistance:
The Code which came into force on 1st January 2016 can be found
at this link, pending its publication in
Legifrance. One Title comes into force later on 1st June 2016 -
'titre IV du livre II relatives à l'abrogation et au retrait des
actes administratifs unilatéraux'.
There are several significant issues in relations with the tax
administration which need to be worked through. in particular where
there is an absence of response from the tax administration to
correspondence, setting out the position as to foreign law within
two months, and a deemed acceptance may then be inferred.
In other words, if the administration has not done more than
ackowwledge a taxpayer's written statement of their tax position
set out in correspondence during a query or investigation which was
sent carrying an accusé de réception or acknowledged by the
taxpayer, that absence of a response can amount to a tacit
acceptance by the administration of the taxpayer's position.
This is important as, whilst the expiration of two months
from the accuse de réception implies acceptance, the taxpayer can
then also require that the administration confirms its acceptance
of the taxpayer's position in writing, if it has not replied.
This is of high importance for decisions involving trusts, and
their position under article 792-0 bis I 1., which the
administration will as a matter of foreign law, be unable to
process quickly in any triangular relationship between a taxpayer
their local tax administration and the SIE in Noisy le Grand.
It is worth considering the scope of application of this
universal codification of the overall French administration's
responsibility, with specific reference to the tax administration
itself and to what extent the Tax Code and its regulations and
procedures can be distinguished or exempted from the application of
general principles of French administrative law or not.
The new Codification of existing law and practice also brings
int the light of day an existing relief. The possibility for a form
of administrative appeal to the hierarchy of the fonctionnaire
concerned, which suspends the implementation of the decision
in question during the cnsiderationof that internal appeal.
The Conseil d'Etat has held that the recours hiérarhique
suspends the "mise en recouvrement" of taxation, if lodged in
time:
Le recours hiérarchique suspend la mise en recouvrement
La saisine hiérarchique entraine suspension de la mise en
recouvrement
Conseil d'État, 8ème / 3ème SSR, 21/10/2015, 369803
The effect is to introduce a possibility to resolve the
issue before taking the matter before a tribunal. It
has to be introduced within the limitation period for such an
appeal and therefore suspends that period until the matter is
resolved, it does not exclude a further contentieux:
Article L411-2 du CRPA
Toute décision administrative peut faire l'objet, dans le délai
imparti pour l'introduction d'un recours contentieux, d'un recours
gracieux ou hiérarchique qui interrompt le cours de ce
délai.
Lorsque dans le délai initial du recours contentieux ouvert à
l'encontre de la décision, sont exercés contre cette décision un
recours gracieux et un recours hiérarchique, le délai du recours
contentieux, prorogé par l'exercice de ces recours administratifs,
ne recommence à courir à l'égard de la décision initiale que
lorsqu'ils ont été l'un et l'autre rejetés.
In other words if you use it, you will need to have the
paperwork ready to take the matter to the tribunals before the end
of the hierarchical appeal process.