A financial institution receives from its parent company, as a remuneration of investment of savings income to its clients, commissions paid partly upon subscription of the shares by the clients and partly upon the expiry date of these shares.

As the balance rate varies in function of the investment duration, the institution is thus encouraged to convince its clients to keep their savings. So, the latter institution should be considered as liable for a service of investment follow-up, ending up with the share reimbursement and the remuneration of which is determined (in its amount) only at this date.

As far as the Court of Besancon is concerned, commissions cannot be afterwards wholly charged to the tax year when the shares were subscribed (November 4, 1994).

It should be noted that this decision, in its meaning, is contrary to that of the Administrative Court of Chalons-sur-Marne dated July 5, 1994 which considered that all commissions should be taxed the same tax year the shares were subscribed.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. For additional information contact Claire Acard on 33/(1)/55 61 10 10 or Lionel Benant on 33/78.63.72.35. The members of ARCHIBALD ANDERSEN Association d'Avocats (S.G. Archibald and Arthur Andersen International) are registered with the Hauts-de-Seine Bar and the Lyon Bar.