Article 3-1 of the France-United Kingdom tax treaty provides that the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. Where an individual is resident of both contracting states, article 3-2 of the treaty provides for tie breaking rules.
The French tax administration, after considering an individual to be a resident of France, addressed him a tax reassessment. The individual intended to benefit from the France-UK tax treaty's provisions to avoid double taxation, by prevailing over a UK residence for tax purposes.
In a decision dated May 21, 1996, the Paris Administrative Court of Appeals ruled that the production to the Court of a letter of a British consulting firm, addressed to a third party, asserting that the individual had paid UK income tax, did not prove in itself that he was liable to tax in the UK. Therefore, the individual could not benefit from the France-UK tax treaty's relief provisions.
The content of this article is intended to provide a French guide to the subject matter. Specialist advice should be sought for your specific circumstances.
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