In an instruction 7 H-2-96 dated April 22, 1996, the Administration drew the conclusions from the European Communities' Court of Justice decision dated February 13, 1996 pursuant to which the levying of the 1.20% duty on mergers, provided for in the former Article 816-I-2 of the French Tax Code (FTC), as well as the 3% levy, provided for in the former Article 812-I-1 of the FTC in the event of capital increases by the capitalization of profits, reserves or provisions of any nature do not comply with EC Directives. Requests for refunds and cancellations of the duties concerned will be favorably received provided that they meet the usual criteria for admissibility and involve a scale of rates which is not authorized by the Directive of July 17, 1969 as amended. Consequently, according to the Administration, the 1.20% is only refundable in its entirety in the case of mergers which were subject to registration after January 1, 1986. As for the 3% duty, only the portion of the charge exceeding the authorized 1% limit would be refundable.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought for your specific circumstances.
For additional information contact Claire Acard on +33.(1).55 61 10 10 or enter text search: "ARCHIBALD ANDERSEN Profile".
See More Popular Content From