The Administrative Court of Orléans decided on 25 October 1994 that the withdrawal by a non-trading company (Société Civile) from its former commercial activities which represented 35 % of its overall activities cannot be regarded as a change of activity and consequently is not subject to the provisions of Article 221- 5 of the French General Tax Code (relating to the immediate taxation of increases of value included in a company's assets in the case of a discontinuance of business). In fact the Court decided that Article 221-5 should be interpreted strictly and implies an actual change of activity.
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