France vs. Zimmer Ltd., March 2010, Conseil D’Etat No. 304715, 308525

Posted on | By Courts of France
Category: Business Restructuring, Permanent Establishments, Sales and Marketing Hubs | Tag: , , , ,
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The French company, Zimmer SAS, distributed products for Zimmer Limited. In 1995 the company was converted into a commissionaire (acting in its own name but on behalf of Zimmer Ltd.).

The French tax authorities argued that the commissionaire was taxable as a permanent establishment of the principal, because the commissionaire could bind the principal.

The Court ruled that the commissionaire could not bind the principal. Therefore, the French commissionaire could not be a permanent establishment of the principal.

 
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France-vs-Zimmer-March-2010-case-nr-304715

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