Tag: Product risk

France vs. Ballantine's Mumm Distribution, Dec 2012, CAA no 10PA00748

France vs. Ballantine’s Mumm Distribution, Dec 2012, CAA no 10PA00748

Ballantine’s Mumm Distribution (later – Société de participations et d’études des boissons sans alcool or SOPEBSA), is a French wholesaler of beverages, and was, until 1999, a fully fledged distributor on the French market of the products from the English company Allied Domecq Spirits and Wine Limited (ADSW). Both companies are owned by the Allied Domecq PLC group. By a commission contract entered into 12 April 1999, Ballantine’s Mumm Distribution continued to market the products of Allied Domecq Spirits and Wines Limited in France but now as a commission agent. Following an audit for FY 1997 to 2000, the tax administration considered that Ballantine’s Mumm Distribution had, for the financial year ending in 2000, on the one hand, unduly borne an expense relating to a goods insurance contract, and on the other hand, transferred its clientele to Allied Domecq Spirits and Wine Limited without consideration. The tax authorities considered that these transactions were part of an abnormal management constituting a ... Read more