The State Council reaffirms that the non-resident partners of partnerships are taxed in France because of their participation in society and he said that the OECD model tax treaties do not object.
The rules for taxing non-resident partners of partnerships are now described. The State Council reaffirms that the non-resident partners of partnerships are taxed in France because of their participation in society and he said that the OECD model tax treaties do not object.
The rules for taxing non-resident partners of partnerships are set out precisely. The State Council (highest tax court) reaffirms that the non-resident partners of partnerships are taxed in France because of their participation in society and he said that the OECD model tax treaty do not object.
The issue of taxation of the results achieved in France by French partnerships whose partners are non-resident has, for fifteen years, caused some controversy between the advocates of corporate transparency who wished that, basically, the non-resident partners are taxed in France as if the company did not exist and those who felt the need to draw all the consequences that society exists independently of its members and it was not can be ignored.
If the principle of taxation in France in law had been decided by the precedents of the State Council, the impact of tax treaties had yet to be specified because the case was not quite at the end of the argument.
This is done today. By a decision particularly clear and provided with the authority to close debate litigation, the State Council has indeed confirmed, so solemn, that the non-resident partners of French partnerships are taxable in France because of their participation in society and the tax treaties which take the model of the OECD, that is, those that do not contain specific provisions that would impede them, do not object (EC 11 July 2011 No. 317 024 Plen., Quality Invest).
