Methods for Calculating the Asset Ratio Under Article 123 bis of the CGI – The Conseil d’État Confirms the Use of Real Asset Values

In this article published in Le Fiscal by Doctrine, Franck Le Mentec examines a recent decision by the Conseil d’État concerning the calculation of the asset ratio under Article 123 bis of the French General Tax Code (CGI). The court confirmed that the ratio must be determined using the real (market) values of the entity’s assets rather than their book values, rejecting the position previously taken by the tax administration. This ruling departs from established administrative doctrine and clarifies the criteria for determining whether an entity falls within the scope of Article 123 bis. The article explores the legal reasoning behind the decision and its implications for taxpayers, particularly those with significant intangible assets such as image rights.