The French tax authorities released a report on 11 June 2013 regarding recommendations aimed at strengthening existing transfer pricing rules applicable to international groups in France, to better combat tax optimization and avoidance by multinational companies.
The French General Inspectorate of Finance (IGF) led a mission of international comparison on the fight against tax evasion by international groups.
The IGF has conducted a case study of the rules in five OECD countries: Germany, Canada, the United States, the Netherlands and the United Kingdom. From this comparison the IGF concludes that French law is falling behind the practices in these countries and advocates strengthening and clarifying the tax rules.
The proposals of the IGF, in the international context of the fight against the “erosion of the tax base and the relocation of profits” (the G20 and OECD) and the national context of the fight against tax evasion, strengthen the fight against fraud and abuse of transfer pricing.
