France: New provisions on business reorganizations

Tax Insights ()

On September 25, 2013, the French government released its 2014 draft Finance Bill which contains provisions regarding business restructuring. The provisions relate to situations where there is a transfer of functions or risks to a related party that results in a significant decrease of profits - the transferor should evidence that it has received arm’s length compensation. It should be noted that this legislation has yet to be adopted and could still be subject to change.