Severance Pay: Holding Corporate Offices Does Not Affect the Tax Treatment of Amounts Received in Connection with the Termination of an Employment Contract – by Jérôme Commerçon and Loïc Muller
Severance pay: Holding corporate offices does not affect the tax treatment of amounts received in connection with the termination of an employment contract
(Council of State, May 22, 2017, 3rd–8th Chambers, No. 395440)
This article was also published on
fiscalonline.com, July 7, 2017
The Council of State has just ruled in an unpublished decision dated May 22 (Council of State, May 22, 2017, 3rd–8th Chambers, No. 395440) that severance pay received by a former employee must be fully exempt from income tax to the extent that the termination appears to lack a real and serious cause, even if the taxpayer also held the position of corporate officer, which ended at the same time.
Firm Contacts
Jérôme Commerçon
+33 (0) 1 83 92 38 38
Loïc Muller
+33 (0) 1 83 92 38 38
