The French Supreme Court ("Cour de cassation") decided on November 14, 1995 that the transfer tax provided by Article 720 of the French Tax Code applies to any agreement that allows someone to carry out the same activities (or part of them) as those that used to be performed by someone else. In the present case, a company agreed to sell part of its equipment (used to manufacture goods) to another company and then ceased all activity. According to the Court, such an agreement is subject to the transfer tax of Article 720, notwithstanding the fact that the final discontinuance of the selling company has not been stated and that the transfer of the clientele, the transfer of a subcontracting agreement and the transfer of the manufacturing process were not included in this agreement.
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". The members of ARCHIBALD ANDERSEN Association d'Avocats (S.G. Archibald and Arthur Andersen International) are registered with the Hauts-de-Seine Bar.
See More Popular Content From