Court of Appeals of Paris decides on concept of beneficial owner under France-UK tax treaty

The Court of Appeals of Paris decided on 23 May 2005 that a Scottish bank, which had acquired dividend coupons under an usufruct agreement with a US company, was the beneficial owner of the dividends distributed by the French subsidiary of that US company (and the attached avoir fiscal imputation credit within the meaning of Arts. 9(6) and (7) of the Fance-Uk tax treaty of 22 May 1968). Details of the decision are summarized below.

(a) Facts.…