Coupole Finance is a company incorporated under Luxembourg law, managed by Mr and Mrs A., which provides services in the field of the design, production, sale, distribution and construction of spherical houses. The company was established on 31 July 2000 and held an exclusive licence agreement for d ... Read more

EDF International subscribed to convertible bonds issued by its wholly owned UK subsidiary at a low coupon rate. French tax authorities argued the rate was below arm's length for straight debt and that the conversion feature had no value to an existing sole shareholder, characterising the benefit as a hidden profit distribution subject to withholding tax. France's Conseil d'État upheld the tax authority's position in December 2025 ... Read more

French subsidiaries Industeel Creusot and Industeel Loire paid 1% royalties to Luxembourg parent ArcelorMittal SA for use of the group brand and logo. The French tax authorities disallowed the deductions as abnormal management acts, accepting only a symbolic 0.1% rate. The Paris Court of Appeal upheld the assessments in 2025, finding the ArcelorMittal brand functioned only as an umbrella brand with no proven decisive influence on the subsidiaries' B2B sales ... Read more

During audits covering 2008 to 2011, French tax authorities assessed withholding tax on expenses Société Générale bore for foreign subsidiaries — including seconded staff costs and IT services — that were not reinvoiced or insufficiently reinvoiced. The authorities characterised these as hidden distributions under Article 111 of the General Tax Code. France's Council of State upheld the tax authority's position in December 2025, confirming that reintegration into taxable income did not preclude such characterisation ... Read more

During audits covering 2008 to 2011, French tax authorities assessed withholding tax on expenses Société Générale bore for foreign subsidiaries — including seconded staff costs and IT services — that were not reinvoiced or insufficiently reinvoiced. The authorities characterised these as hidden distributions under Article 111 of the General Tax Code. France's Council of State upheld the tax authority's position in December 2025, confirming that reintegration into taxable income did not preclude such characterisation ... Read more

A French distributor within the SNA group used a gross margin approach supported by 22 external comparables to price purchases from its Swedish parent. The French tax authority challenged the methodology, arguing that large customer discounts were improperly excluded, making the company loss-making against comparable distributors. The Nantes Court of Appeal largely upheld the administration's position, finding that profits had been transferred to the Swedish related entity contrary to the arm's length principle ... Read more

Kerry Ingredients Holdings France SAS bore nearly all costs of a group restructuring that transferred R&D activities to Italian and UK entities, without invoicing related parties. The French tax authority reintegrated these costs as indirect profit transfers under Article 57 of the General Tax Code. The Douai Court of Appeal upheld the assessment in 2025, rejecting the company's argument that the restructuring served its own commercial interests ... Read more

Following a tax audit of fiscal years 2011 and 2012, French authorities disallowed interest expenses on intra-group loans and applied CFC rules to a UK affiliate's profits. The Paris Administrative Court of Appeal overturned the lower court, finding that increased interest margins reflected genuine commercial terms — extended maturities and waived early repayment — and were not abnormal management acts, reducing AXA's taxable base by over €455 million combined ... Read more

A French subsidiary of the Menarini Group, consistently reporting operating losses, faced transfer pricing adjustments after tax authorities found it had overpaid related Italian entities for purchased products, constituting indirect profit transfers under Article 57 of the French General Tax Code. The Conseil d'État partially allowed the appeal in May 2025, annulling the adjustment relating to Menarini IFR while upholding the adjustment concerning AMDI ... Read more

A French holding company granted interest-free loans totalling over €35 million to four Romanian wind energy subsidiaries between 2011 and 2014. The tax authorities treated the absent interest as indirect profit distributions abroad. The Conseil d'État ruled in December 2024 that the burden of proof rested on the taxpayer to demonstrate the administration's applied interest rates were excessive, deciding in favour of the tax authority ... Read more

A Paris luxury shoe retailer operating under the Roger Vivier brand had generated negative net margins since 2003. French tax authorities challenged low resale prices on unsold goods and excessive brand promotion costs as indirect profit transfers, applying a 6.76% average operating margin benchmark. The Paris Administrative Court of Appeal upheld the adjustments in December 2024, ruling in favour of the tax authority ... Read more

A French company paid an advance dividend to its Luxembourg parent, claiming withholding tax exemption under domestic law. The tax authorities denied the exemption, finding the Luxembourg entity was not the beneficial owner, as funds were immediately passed upstream to another Luxembourg company with no other assets or activities. The Conseil d'État upheld the tax authority's assessment in November 2024, confirming the conduit characterisation ... Read more

A French tax group headed by Howmet SAS borrowed funds from a Luxembourg group entity's Swiss permanent establishment and contributed them to a Belgian affiliate. The French tax authorities disregarded the arrangement as an abuse of rights. The Conseil d'État, in July 2024, upheld the Paris Administrative Court of Appeal's decision, confirming the arrangement was wholly artificial and served no purpose beyond avoiding tax ... Read more

SA Engie, the French holding company of the Engie energy group, operated a 'single voice' arrangement for liquefied natural gas trading through intra-group service agreements with its US and Luxembourg subsidiaries. French tax authorities challenged the arm's length remuneration for these services. The Paris Court of Appeal ruled in favour of the taxpayer in 2024, finding the tax authority had not discharged its burden of proof regarding the pricing of the LNG scheduling, shipping, and cargo transactions ... Read more

A French administrative court of appeal examined whether Alstom Transport SA had correctly priced intra-group services under a cost-sharing agreement and whether it had improperly deducted costs from a contract entered into by a related party. The tax authorities applied a 5% mark-up and disallowed certain deductions. The court sided with Alstom on the mark-up issue but upheld the disallowance of costs linked to the 2008 Brazilian contract ... Read more

Willink SAS issued two intercompany convertible bonds at an 8% annual interest rate, which French tax authorities challenged as exceeding the arm's length rate. After the Conseil d'État endorsed RiskCalc as a sufficiently reliable credit rating tool and remanded the case, the Paris Administrative Court of Appeal annulled the tax assessment in 2024, ruling that Willink demonstrated its interest rate was consistent with arm's length conditions ... Read more

A French subsidiary within the Apex Tool group deducted interest on an intercompany loan at a 6% rate. The tax authority challenged the deduction, and the Paris Court of Appeal dismissed the taxpayer's appeal in 2024, finding that Apex Tool Group had failed to provide sufficient evidence that the 6% interest rate reflected arm's length conditions, including the borrower's specific risk profile at the time the loan was issued ... Read more

Following a tax audit covering FY 2013 and 2014, French authorities challenged GEII Rivoli Holding's deduction of intra-group interest at 5.08%, above the statutory safe harbour rate of 2.79%. The company justified the rate using Moody's RiskCalc and S&P corporate bond yield curves. The Conseil d'État rejected the RiskCalc approach but accepted the S&P yield curve analysis, setting aside the additional corporate income tax assessments ... Read more

SAP France, a subsidiary of the German SAP group, deposited funds under a Cash Management Agreement at 0% interest. The French tax authorities challenged this as an abnormal act of management and added imputed interest to taxable income. After a referral from the Supreme Court, the Court of Appeal of Versailles in 2024 upheld the tax authority's adjustment, confirming that arm's length remuneration was required on the sight deposits ... Read more

A French company deducted a loss arising from a debt waiver granted to its German subsidiary, arguing the relief was commercially motivated. The tax authorities disallowed the deduction as an abnormal act of management. In March 2024, the CAA de Nantes upheld the disallowance, finding the taxpayer had not established a genuine commercial benefit or risk of harm to supplier relationships justifying the waiver ... Read more

A French subsidiary of Bunge deducted interest on loans from related party Bunge Finance BV, with loan agreements backdated to 2012 despite being signed in November 2014. The French tax authority denied the deductions, finding the arrangement retroactive and the interest rates not at arm's length. The Administrative Court of Appeal upheld the assessment in January 2024, dismissing the taxpayer's appeal in full ... Read more

A French manufacturer and distributor of utility meters was assessed for tax years 2012 and 2013 after authorities alleged profits had been shifted to a Hong Kong group distributor via mispriced intercompany transactions. The Administrative Court of Appeal dismissed the tax authority's appeal in January 2024, upholding the lower court's annulment of the assessment and confirming the taxpayer's transfer pricing approach was arm's length ... Read more

A French subsidiary engaged in electro-grafting technology patents was assessed withholding tax after authorities treated un-invoiced patent development and defence services provided to its British Virgin Islands parent as a hidden profit transfer under Article 57. Applying a 5% cost-plus margin, the tax authority imposed withholding tax on the deemed transfer. The Administrative Court of Appeal of Lyon ruled in favour of the taxpayer in January 2024 ... Read more

SA Compagnie Gervais Danone paid 88 million Turkish lira to its Turkish affiliate Danone Tikvesli. French tax authorities treated the payment as an indirect profit transfer subject to withholding tax under Article 57 of the General Tax Code. After lower courts split on the issue, the Conseil d'État ruled in favour of the taxpayer in December 2023, setting aside the Court of Appeal's decision and discharging the disputed tax assessments ... Read more

SAS CFEB Sisley, head of the Sisley cosmetics group, was assessed by French tax authorities who alleged that pricing to its Hong Kong subsidiary constituted an indirect profit transfer under Article 57. The Montreuil Administrative Court discharged the assessment, finding internal comparables showed equivalent gross margins. The Paris Court of Appeal dismissed the authorities' appeal in December 2023, confirming the tax authorities had not met their burden of proof ... Read more

RKS, a French manufacturer of large custom bearings controlled by Sweden's SKF group, reported losses from 2005 onward. French tax authorities adjusted results to a 4.17–4.32% median net margin derived from a benchmark study. After earlier appellate rulings and a Conseil d'État referral, the Versailles Administrative Court of Appeal in 2023 ruled in favour of the taxpayer, annulling the additional taxable income assessment following a full FAR and risk-control analysis ... Read more

A French subsidiary subscribed to convertible bonds issued by its English subsidiary at a 1.085% annual coupon, arguing the conversion option reduced the arm's length debt rate. The French tax authority challenged the rate, asserting the conversion component held no value for the subscriber. The Versailles Court of Appeal upheld the tax authority's position in 2023, confirming a higher arm's length interest rate should have applied to the debt component ... Read more

A French subsidiary of the Italian Menarini Group repeatedly reported operating losses due to overpriced purchases from related Italian entities. The French tax authorities applied the CUP and TNMM methods and adjusted prices to the median, finding an indirect profit transfer under Article 57. The Administrative Court of Appeal in Paris dismissed the taxpayer's appeal in November 2023, upholding the assessment in favour of the tax authority ... Read more

A French generic pharmaceutical distributor paid royalties to its Danish parent and a related UK entity in 2010 and 2011. French tax authorities argued the payments constituted indirect profit transfers, as the taxpayer had not demonstrated the reality of services received. The Court of Administrative Appeal dismissed the authorities' appeal in 2023, upholding the first instance ruling in favour of SAS Arrow Génériques ... Read more

SA SACLA, a French protective clothing trader, sold a trademark portfolio to Luxembourg-based Involvex for €90,000 in 2008. French tax authorities challenged the price under Article 57, valuing the trademarks at over €11 million. The Lyon Court of Appeal ordered an independent expert valuation using DCF and relief-from-royalty methods, accounting for a five-year royalty exemption, and ruled mostly in favour of the tax authority in July 2023 ... Read more

ST Dupont, a French luxury goods manufacturer majority-owned by a Dutch holding company, sold products to its Hong Kong distribution subsidiary at prices the French tax administration deemed below arm's length. Applying an internal CUP method, authorities corrected ST Dupont's declared losses for 2009–2011. After partial relief at first instance, the Conseil d'État ultimately ruled in favour of the tax authority in July 2023 ... Read more

SA Saint Louis Sucre, a beet sugar producer within the Südzucker group, faced transfer pricing reassessments by French tax authorities covering financial years 2011 and 2013, challenging intercompany pricing using quoted commodity prices. The Versailles Court of Appeal in 2023 ruled mostly in favour of the taxpayer, upholding the internal CUP as the most appropriate method and discharging the majority of additional corporation tax and penalties assessed ... Read more

SAS Weg France, a subsidiary of a Brazilian-led group, was audited by French tax authorities who argued it performed a gratuitous financial function by paying group suppliers within 30 days while awaiting goods for up to three months. Authorities adjusted profits to the median of a benchmark study and imposed withholding tax. The French Court of Appeal ruled in favour of the taxpayer in May 2023 ... Read more

Howmet SAS, head of a French tax group, contributed borrowed funds to a Belgian group entity via a Swiss permanent establishment of a Luxembourg company. The French tax authorities disallowed the arrangement as an abuse of rights. After the Montreuil Administrative Court sided with Howmet, the Paris Administrative Court of Appeal reversed that decision in 2023, upholding the tax authority's adjustments and ordering payment of the disputed corporate tax ... Read more

A French battery manufacturer granted non-interest-bearing advances totalling tens of millions of euros to its Canadian subsidiary across three fiscal years. The French tax authorities treated the forgone interest as an indirect transfer of profits abroad, subject to withholding tax. The Paris Court of Appeal upheld the assessment in 2023, rejecting arguments based on industrial dependence and the EU free movement of capital under Article 63 TFEU ... Read more

A French manufacturer sold products abroad through both subsidiaries and independent agents. The tax authority applied an internal CUP, using commissions paid to independent agents as a benchmark for subsidiary remuneration. SAS Sames Kremlin argued that subsidiaries performed greater functions and operated in different markets. The Paris Administrative Court of Appeal dismissed the appeal in 2023, upholding the transfer pricing adjustment and finding the taxpayer had not discharged its burden of proof ... Read more

SA Exel Industries sold products through subsidiaries in key markets and independent agents elsewhere. French tax authorities applied a CUP method, using commissions paid to independent agents to benchmark subsidiary remuneration, treating the excess as a transfer of profits abroad. The company argued functional and geographic differences undermined comparability. The Paris Administrative Court of Appeal upheld the tax authority's assessment in 2023 ... Read more

A French subsidiary issued two intercompany convertible bonds in 2011 at an 8% annual interest rate. The tax authorities challenged the rate as inconsistent with the arm's length principle, a position upheld by lower courts. The Conseil d'État reversed those decisions in 2022, ruling that the RiskCalc tool could reliably determine a company's credit rating for transfer pricing purposes despite its limitations and sector differences among comparables ... Read more

Following the absorption of a Danish company with a French branch, French tax authorities argued that customer relationships were transferred free of charge to Bupa Insurance Limited, constituting an indirect profit transfer under Article 57 of the General Tax Code. The Marseille Administrative Court of Appeal sided with the taxpayer, and in December 2022 the Conseil d'État upheld that decision, dismissing the tax authority's appeal ... Read more

A French corporation paid dividends to its Luxembourg parent, which redistributed the full amount to its own parent the following day. The French tax authority denied treaty withholding tax relief, arguing the Luxembourg recipient was not the beneficial owner. The Paris Court of Appeal upheld that decision in 2022, finding the Luxembourg entity performed no activity beyond receiving and channelling dividends, confirming conduit treatment ... Read more

A French holding company granted interest-free loans totalling over €35 million to its Romanian wind energy subsidiaries across 2011–2014, funded largely by its own borrowings. The French tax authority assessed additional corporate income tax, treating the absent interest as indirect transfers of profits abroad. The Administrative Court of Appeal upheld the assessment in November 2022 but adjusted the interest rate used to calculate the additional taxable income ... Read more

A French subsidiary of EDF subscribed to convertible bonds issued by its English subsidiary at a 1.085% annual coupon, applying the Tsiveriotis and Fernandes model to justify the low rate. The French tax authority argued the conversion option had zero value and the arm's length rate should be 4.41%. The Council of State upheld the tax authority's position in November 2022, ruling in favour of the administration ... Read more

A French protective clothing trader sold a portfolio of trademarks to a Luxembourg company for €90,000, receiving a five-year royalty exemption in return. The tax authority challenged the price as an indirect profit transfer under Article 57 of the General Tax Code. A court-appointed expert valued the trademarks at nearly €5.9 million, which the Lyon Administrative Court of Appeal upheld in 2021 before the case reached the Conseil d'État in 2022 ... Read more

Yazaki Systems Technologies France paid €7 million to Renault as compensation for damages arising from an anti-competitive agreement involving the Yazaki group. The French tax authorities disallowed the deduction, arguing the payment was made on behalf of the Japanese parent company. The Administrative Court of Appeal of Versailles reversed the lower court's decision in 2022, ruling in favour of the taxpayer and allowing the deduction ... Read more

A French real estate company issued a ten-year convertible bond at 12% interest to its sole shareholder, capitalising accrued interest annually. The French tax authorities limited the deductible interest rate to 2.82% under intra-group financing rules. The Conseil d'État dismissed the taxpayer's appeal in September 2022, confirming the tax authority's assessment and upholding the statutory cap on related-party interest deductions ... Read more

SAP France deposited funds under a Cash Management Agreement at 0% interest with its German parent group. French tax authorities challenged this as an abnormal act of management, adding notional interest to taxable income. The Conseil d'État, reviewing the Montreuil Administrative Court's 2020 ruling rejecting SAP France Holding's claims, remanded the case for reexamination in September 2022 ... Read more

SA Tropicana Europe's French permanent establishment was converted from a full-fledged manufacturer to a limited-risk contract manufacturer in 2009. French tax authorities challenged the restructuring as an abnormal act of management and issued reassessments for 2010–2013. The Administrative Court set aside the assessments, and the Douai Court of Administrative Appeal upheld that decision in favour of the taxpayer in August 2022 ... Read more

Ferragamo France, a French retailer of Salvatore Ferragamo luxury products, was assessed by French tax authorities for insufficient remuneration related to trademark expenses and contributions. Earlier courts had dismissed the assessment, but following a Supreme Court remand, the Administrative Court of Appeal in 2022 ruled in favour of the tax authority, finding the gross margin remuneration inadequate given the subsidiary's persistent losses and excess indirect costs ... Read more

Issey Miyake Europe, a French subsidiary of Japanese fashion group Issey Miyake Inc, was assessed for additional income after a tax audit covering FY 2006–2012. The French tax authority applied the transactional net margin method, finding the company's retail results fell outside the arm's length range and adjusting them to the median. The Administrative Court dismissed the company's appeal, and the Paris Court of Administrative Appeals upheld that decision in 2022 ... Read more

Accor failed to charge its Brazilian subsidiary for use of its trademarks, prompting French tax authorities to treat the uncharged amount as a deemed profit distribution subject to 25% withholding tax. The Administrative Court of Appeal of Versailles in 2022 upheld the tax authority's position, confirming that deemed distributions fell outside the treaty dividend definition and rejecting Accor's claim for a reduced conventional rate ... Read more