Register to receive Taxand’s latest opinion on topical tax news
News › Weekly Alert Article
Multinationals may be entitled to claim refunds
An additional levy on profits distributed by companies subject to corporate tax in France may be in breach of EU law as it favours a certain legal form. Taxand Finland explains why businesses may be entitled to compensation.
Under EU law, companies should have the freedom to choose the most appropriate legal form for doing business in another Member State. This freedom of establishment is however restricted when a Member State introduces tax provisions that favour or discriminate a certain legal form.
This difference in tax treatment between a French permanent establishment of a foreign company and a French subsidiary of a foreign company, whose intra-group dividends are within the scope of the contribution, is likely to constitute a restriction of the freedom of establishment.