The French Tax Authorities give some interesting specifications concerning the mergers and partial mergers made between French tax consolidated companies. The mergers and partial mergers realized at the net book value between tax consolidated companies do not constitute any indirect subsidy up to the difference between the real value of the contributed goods and their net book value. This rule applies:
- rightfully in case of merger, insofar as the absorbing company remains a member of the group during the tax year of the merger;
- upon prior agreement from the Tax Administration in case of partial merger and under the condition of the respect of the engagements provided by articles 210 A and 210 B of the French General Tax Code (answer to the Tax Committee of the Administrative Mission Organization dated February 20, 1996).
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 33/22.214.171.124, Joel Fischer on 33/126.96.36.199, 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.