In a decision of 15 July 1994, n° 93-978, the Paris Administrative Court of Appeal decided that the compensation received by a company in exchange for the cancellation of a lease presented the qualities of a long term capital gain when this compensation was intended to compensate for the loss of a benefit which allowed the company to carry out its activity, which provided a regular source of income and which, therefore formed part of fixed assets.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. For additional information contact Claire Acard on +33 (1) 55 61 10 10. The members of ARCHIBALD ANDERSEN Association d'Avocats (S.G. Archibald and Arthur Andersen International) are registered with the Hauts-de-Seine Bar.
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