French General Tax Code
In forceI. - Where an exemption from or reduction in registration duties, land registration tax or additional tax on registration duties or land registration tax has been obtained in return for compliance with a commitment or the production of a justification, failure to comply with the commitment or to produce the justification shall result in the obligation to pay the duties from which the transfer has been exempted. The duties, plus late payment interest as provided for in article 1727, must be paid in the month following, as the case may be, the breach of the undertaking or the expiry of the period allowed for producing the required proof.
II. - In the event of non-compliance with the undertakings provided for in II of Article 1135 bis, in Article 1137 and in I bis of Article 1594, an additional duty of 1% is added to the duties and late payment interest provided for in Article 1727.
III. - In the event of non-compliance with the conditions giving entitlement to the exemptions provided for in articles 790 H and 790 I, the donee or his successors shall pay an additional duty equal to 15% of the amount determined in I of this article, excluding late payment interest.
This III does not apply in the event of redundancy, disability corresponding to 2° and 3° of Article L. 341-4 of the Social Security Code, the death of the donee or of one of the persons subject to joint taxation with him or her, or when the donee does not comply with the conditions mentioned in the first paragraph of this III due to exceptional circumstances beyond his or her control.
