Moreover, the general CIT anti-abuse clause “coexists” with the Article L64 abuse of law procedure, as that procedure is independent. The commentary specifies how the CIT “anti-abuse clauses” interact with each other and confirms that, for CIT purposes, the general CIT anti-abuse clause applies to all transactions except for those covered by Article 210-0 A of the GTC. It is therefore difficult to navigate through these rules… and the administration’s recently published commentary attempts to offer some guidance.
#FINANCIAL TRANSACTION TAX TPC CODE#
And that is not all: at the same time, the anti-abuse clause set forth in Article 210 A of the French General Tax Code (GTC) relating to mergers and similar transactions remains unchanged! L64) to arrangements that are principally tax-driven (TPC, Art.
The administration has just confirmed that the date on which the arrangement was set up is irrelevant to the assessment of whether the general anti-abuse clause is applicable: the clause applies to any transaction that has an impact on the calculation of corporate income for fiscal years begun on or after 1 January 2019.īut the legislature, which was clearly quite inspired last year, did not stop there! It also extended the “abuse of law” procedure (French Tax Procedure Code (TPC), Art. In the 2019 Finance Act, the French legislature has inserted a general corporate income tax (CIT) anti-abuse clause designed to prohibit companies from implementing arrangements whose principal objective is, or whose principal objectives include, the obtainment of a tax advantage.
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