Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/23/2014

France - Refund opportunities for investment funds 

April 23: What are the implications in France of a recent judgment of the Court of Justice of the European Union (CJEU) in a tax case involving withholding tax on dividends paid by EU companies to a non-EU investment fund?

In Emerging Markets Series of DFA Investment Trust Company, C-190/12 (10 April 2014), the CJEU concluded that the free movement of capital principle applies to dividends paid by companies in an EU Member State to investment funds established in non-EU Member States. Here, the Polish tax authorities had denied a U.S. investment fund, a tax exemption on dividends paid by companies established in an EU Member State to the investment fund. Read TaxNewsFlash-Europe.


The judgment in the Emerging Markets case is not viewed as undermining the position of the French high tax court (Conseil d’Etat) in the Santander case (addressing the different tax treatment for French-sourced dividends received by resident and non-resident undertakings with respect to collective investments in transferable securities).

Refund opportunities

The Emerging Markets case may provide opportunities for refunds of withholding tax, provided that non-EU investment funds timely file their refund claims. Investment funds that want to seek refunds of withholding tax paid on or after 1 January 2009 must file their refund claims before 31 December 2014.


Read an April 2014 report [PDF 642 KB] prepared by tax professionals with Fidal Direction Internationale.*



For more information, contact a tax professional in Paris or with KPMG’s French tax center in New York:


Laurent Leclercq

+33 (0)1 55 68 16 42


Yves Robert

+33 (0)1 55 68 15 76


Séverine Lauratet

+33 (0)1 55 68 16 25


Gilles Galinier-Warrain

+1 212-954-8605


*Fidal Direction International is a French law firm that is independent from KPMG and its member firms.




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now