Following the sale of his activity as a building expert, an entrepreneur asks to benefit from a tax exemption on the capital gain realized on this occasion. This is refused by the administration, one of the conditions attached to this tax advantage not having been respected …
Sale of a business: an exemption, several conditions!
An entrepreneur sells his expertise in building shell, carpentry, cladding and roofing and, because this activity generates less than € 90,000 in annual revenue, he asks to benefit from an exemption from capital gains tax carried out on this occasion.
A request rejected by the administration which recalls that the tax exemption which the entrepreneur intends to avail himself of supposes, of course, the respect of a condition linked to the amount of annual revenue, but also that at the date of the sale, the activity has been carried out for at least 5 years… which is not the case here.
“False” challenges the entrepreneur who, in support of his request, provides a certificate of registration to the expertise institute dated 7 years before the sale, as well as a summons to the police station and a court order appointing him as a forensic expert, dating back 6 years.
Elements which are not sufficient to establish that the entrepreneur effectively carried out his activity of expert during the 5 years preceding the sale, notes the judge, who in turn refuses the benefit of the tax advantage.
Source: Decision of the Nantes administrative court of appeal of January 28, 2021, n ° 19NT00450
Business sale: still tax-exempt? © Copyright WebLex – 2021
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