ARTICLE
28 June 1996

Date Of Apportionment Of The Profit

SA
SG Archibald Andersen

Contributor

SG Archibald Andersen
France Finance and Banking
When a transaction placed under the protection of the Court provides that the forgiveness by the debtors of 50% of their unsecured debt will only be purchased after full payment of the remaining 50% spread out over ten dates of payment, the cancellation of debt thus granted should be considered as bearing a suspensive condition.

Therefore, the debt cannot be considered as paid off as of the conclusion of the transaction, and the profit resulting from the latter is only taxable the tax year during which the condition is performed, i.e. the tax year during which the payment of the last deadline provided by the transaction (Administrative Court of Grenoble, June 7, 1995, no.90-4090, 4th ch, SA Horizal).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be brought about your specific circumstances.

For additional information contact Claire Acard on 33/(1)/55 61 10 10, Lionel Benant on 33/78.63.72.35, Joel Fischer on 33/78.63.72.58, or Laurent Borey on 33/(1).55 61 10 10 or enter text search: "ARCHIBALD ANDERSEN Profile".

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.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More