The Resource Re BNP Paribas : 15VE01061

Re BNP Paribas : 15VE01061

Re BNP Paribas : 15VE01061
Re BNP Paribas : 15VE01061
  • eng
  • eng
Judgment by the Administrative Court of Appeals, Versailles, decision date 13 December 2017. BNP Paribas had branches in Singapore, China, the Philippines, Thailand and India. The head office made interest-bearing loans to the branches to finance their activities. Under the double taxation agreements between France and the other countries concerned, interest payments were taxable in the contracting state where the recipient of the interest payment resided but the country in which the debtor was located could levy a flat-rate withholding tax, the amount of which varied from one agreement to another. Paribas declared the interest received as income in its tax returns in France but claimed rebates in respect of the withholding tax deducted in the other contracting states. The claims for rebate were refused by the French tax administration on the ground that as BNP Paribas and its branches constituted a single legal person, the head office could not be a creditor of the branches and so the payments did not qualify as interest under the double taxation agreements, meaning that the other contracting states had not been entitled to charge withholding tax. The Administrative Court found against the taxpayer who appealed to the Conseil d'État
Citation source
In: International tax law reports. - London. - Vol. 21 (2018), part 2 ; p. 142-209
Geographic coverage
  • European Union
  • Europe
Language note
Baker, P
  • case law
  • banking
  • branch
  • PE
  • residence
  • tax treaty
  • interest
  • intercompany loan

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