In a recent Court Case, the European Community Court of Justice (CJCE September 26, 1996, aff. 28/7/94, A/S Richard Frederiksen), stated that Article 10 of the E.C. directive 69/335 dated July 17, 1969 is not against the fact that a parent company which granted a loan without interests to one of its subsidiaries be subject to income tax on the basis of a interest fixed "a posteriori".
This Court Case is in accordance with the doctrine of the French Tax Authorities and with the precedents of the French High Court. It should be noted that the argument used by the taxpayer to challenge the reassessment was rather strange. Indeed, his argumentation was based on an E.C. Directive applicable to indirect taxes (transfer tax, registration duties ...), whereas his litigation with the Tax Authorities related only to corporate income tax which is a direct tax (and then out of the involved E.C. Directive scope).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be brought about your specific circumstances.
For additional information contact Claire Acard on 33/(1)/55 61 10 10, Lionel Benant on 33/220.127.116.11, Joel Fischer on 33/18.104.22.168, or Laurent Borey 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 and the Lyon Bar.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
In a judgment harking back to the principles in Donoghue v Stevenson, the Court of Appeal has upheld the High Court's decision that the manufacturer of a defective product installed to prevent fire was not liable...
A year-long arbitration pilot scheme to provide a cost-effective, straightforward and quick method of solving legal disputes between claimants and participating members of the press commenced on the 26th July 2016.
Welcome to the Summer edition of Scots Law In Practice. The first three cases contain a common thread – the pursuer in each had a valid claim on the face of things, but in each one, faced legal difficulties in obtaining a remedy.
Each year businesses around the world face a growing number of risks that could potentially jeopardize hundreds of billions of euros.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).