France Administrative Supreme Court Clarifies Horizontal Tax Consolidation Rules for Companies Owned by Non-EU Company

The French Administrative Supreme Court Jan. 20 issued Decision No. 493939, clarifying the horizontal tax consolidation rules for companies owned by a non-EU parent company. The taxpayer, a French company ultimately owned by a Swiss parent company, sought a partial refund of corporate income tax. The taxpayer argued that it could offset a French sister company’s loss against group profits, even though the group was controlled by a Swiss parent. On appeal, the Administrative Supreme Court found that: 1) French tax law allows horizontal tax consolidation only where the nonresident parent company is located in the EU or European Economic ...