CJEU – Recent Developments in Direct Taxation 2016

1. S. 54Introduction

In this paper I will discuss several pending cases regarding French tax law. The first case involves the compatibility with the Merger Directive of a tax deferral on exchange of shares (the Marc Jacob case). The second case relates to the compatibility of a tax on distributions with the Parent-Subsidiary Directive (the AFEP case). The Holcim France SAS and Euro Park Service cases deal with the compatibility of anti-abuse provisions which have been enacted with a view to transposing both the Parent-Subsidiary Directive and the Merger Directive, but are now subject to scrutiny with respect to the freedom of establishment. The Picart case questions whether an exit tax may be considered contrary to the Agreement of 21 June 1999 between the EU and Switzerland.

2. The Marc Jacob case (C-327/16)

2.1. Background

Before I start describing the Marc Jacob case, which is a case involving a purely domestic situation, it is necessary to present some background elements which explain why and how it has now been referred to the CJEU by way of a preliminary ruling.

Let’s go back to 3 February 2016: the French Constitutional Court is faced with a totally new question which involves the re...