In France, the Financial Law 2017 had been published under Law No 2016-1917 on 30 December 2016.
On 29 December 2016, the Constitutional Court issued its decision on the comparability of certain provisions of the Financial Law 2017 with the Constitution. Among the most important provisions of the Act, the following provisions were considered to be a contradiction to the Constitution:
- About the provision of the diverted profits tax, the Court has stated that this tax would be applied only to the decision of the tax administration within the tax audit framework. But since the law does not allow the tax administration to decide whether a company is taxable or not, the court has terminated all the provisions of Article 78 of the law.
- About the provision of providing immediate reporting on transactions with more than EUR 863,000 to prevent VAT fraud, the Court has stated that the penalty provision in the case of a reporting failure, which is 1% of the portion of the price higher than EUR 863,000, was disproportionate and therefore repealed paragraph I of article 105 of the Act.
