French Tax Update - Summer 2016 Case Law

The present French Tax Update will provide an overview of several significant decisions issued during the summer by French courts on tax issues, including: (i) a new constitutional ruling on the eligibility of non-voting shares to the participation-exemption regime for dividends; (ii) the new interpretation by the Conseil d’Etat of the so-called excessive risk (risque manifestement excessif) theory for corporation tax purposes, (iii) several constitutional rulings on tax penalties and the public registry of trust arrangements; (iv) clarifications on the French tax treatment of a US LLC; (v) an unexpected decision of an administrative court of appeals in respect of the VAT exemption for business transfers; and (vi) the extension of the Quemener doctrine for capital gains purposes to certain types of wind-ups (transmissions universelles de patrimoine).

Please contact Siamak Mostafavi if you are interested in this issue.

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