According to article L. 57 of the general tax code , applicable in this case, the tax administration is required to send the taxpayer a reasoned notification of adjustment. This notification must allow the taxpayer to express his observations or indicate that he accepts the proposed adjustment.

Guarantee of the adversarial procedure: transparency of tax adjustments:

With regard to this provision, the Council of State has established that when the tax administration intends to base an adjustment on elements of comparison derived from data from other companies, it must ensure a contradictory procedure. In compliance with professional secrecy protected by article L. 103 of the general tax code, the tax administration must identify these companies by name. However, it must only provide the taxpayer with average figures which do not reveal, even indirectly, the specificities of each company.

This approach aims to reconcile the taxpayer’s right to a fair and transparent procedure with the need to protect the confidentiality of information relating to other companies.

By designating companies by name, the tax administration allows the taxpayer to verify and challenge the validity of the comparison.

By designating companies by name, the tax administration allows the taxpayer to verify and challenge the validity of the comparison. At the same time, providing only averaged data ensures that the specific financial details of individual companies remain protected.

This interpretation of the law aims to maintain the contradictory nature of the tax adjustment procedure while preserving professional secrecy. It promotes a fair and equitable approach to tax assessment and ensures that taxpayers have sufficient information to comment on or accept the proposed adjustment.

Grégory DAMY, lawyer specializing in taxation in Nice, underlines the importance of respecting these legal principles. Understanding the complexity of tax procedures and protecting taxpayer rights is essential to maintaining the integrity of the tax system. Relying on professionals such as Me Grégory DAMY can help individuals navigate the complexity of tax law and ensure that their rights are protected throughout the procedure.