French Tax Update - Amending Finance Bill For 2016 and Noteworthy Q3 Case Law

The last French Tax Update for 2016 will start with an overview of the main provisions proposed by the draft amending finance bill for 2016 (loi de finances rectificative pour 2016, "Draft 2016 Amending Finance Bill"), including: (i) the proposed amendments to the 3 percent contribution on distributed income and to the French participation exemption regimes for dividends and capital gains; (ii) the creation of a new savings plan (Compte PME Innovation) targeting the investment into innovative small and medium-sized enterprises ("SMEs"); (iii) the proposed amendments to the wealth tax exemption applicable to professional assets; and (iv) the introduction of new procedural rules and penalties aiming at strengthening the powers of the French tax authorities.

It will then focus on: (i) the opinion of the ECJ Advocate General Wathelet on the preliminary ruling requirement (agrément) set out under French law for cross-border reorganizations; (ii) a recent decision of the administrative court of appeals of Versailles relating to the tax treatment of perpetual subordinated loans ("PSDI"); (iii) the introduction of a "rolling" tax ruling for research tax credit purposes; and (iv) the opinion of the ECJ Advocate General Kokott in respect of the Belgian fairness tax, which is quite similar to the French 3 percent contribution on distributed income currently challenged before the ECJ.

Please contact Emmanuel de La Rochethulon if you are interested in this issue.

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