Tax law in France

Our tax department offers a complete range of tax services to a diverse clientele, comprised mainly of private or public companies, banks and financial institutions, investment funds or governments.

We are one of the leaders in European mid-market M&A tax transactions and are able to intervene on complex strategic transactions as well as on smaller projects. We also advise on cross-border transactions when one or more parties are not based in the same country as the target company. Our main areas of expertise cover:

mergers and acquisitions
private equity / infrastructure
restructuring / reorganisations / refinancing
carve-out operations
effective tax rate management
joint-ventures

Our tax team works with you to help you avoid tax risks and maximise taxation benefits for your business using our knowledge of the French legal and tax systems and the way they can be reconciled at an international level.

Most of our clients are key players of the following sectors : Energy and natural resources, Food and drink, Industrial engineering, Infrastructure and Private equity.

Transaction tax:

due diligence
buy-side / Sell-side tax due diligence
international support via the Eversheds Sutherland network and “best friend” firms
remedial actions before exits and after completion of acquisitions

Tax structuring:

tax structuring of transactions (tax optimisation, tax consolidation and consolidation of costs and expenses related to the acquisition, securing financial leverage and cash flow, transaction fees, registration fees, VAT / wage tax)
management package expertise
support in the context of pre or post-closing reorganisation operations in order to optimise levers both in France and internationally (carve out, securing rollover schemes, net operating losses, compliance and management re. withholding tax, substance requirements, etc)
preparation and management of relations with tax authorities (cross-border mergers or contribution for shares, transfer of tax losses, etc. )

Modelling:

fund flow modelling
determination of tax liability over the Business Plan, in the frame of acquisition or group reorganization, both in France and internationally
tax impact of dividend flows to serve the acquisition debt
debt push down planning
cash trap management / solutions
thin capitalization rules management over a business plan period

General Corporate Tax:

Tax strategy:

management of the effective tax rate: tax analysis and mapping, review of opportunities, levers and constraints, with the support of the Eversheds Sutherland network and partner firms
international tax strategy in the context of international growth transactions (advice on the location of holdings, creation of organic business, subsidiary vs. branch, joint ventures)

Corporate tax management:

annual tax reviews
calculation of the income tax liability
expertise with regards to tax consolidation
review of the deduction of financial expenses
taxation of cash flow and compliance, particularly with regards to the
application of international treaties
securing the application of international tax treaties (residence, permanent
establishment, capital gains)
management of tax losses
VAT management for company restructuring and projects

Assistance for tax audits and litigation:

tax audit assistance
tax litigation assistance
assistance with tax litigation against the French State (based on French constitutional law or EU law), e.g. in relation to the 3% contribution, horizontal tax consolidation, company value added contribution (CVAE), tax credits, VAT/holding, etc.

Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.