French Court of Appeal Rules Horizontal Group May Not be Formed by Companies Held by Swiss Parent Despite Treaty Non-Discrimination Clause

The Administrative Court of Appeal of Paris issued a decision on 1 March 2024 concerning whether subsidiaries in France of a Swiss parent company may form a horizontal integrated tax group. Under French law, French companies may generally form a horizontal group if at least 95% held by a French parent. Subject to certain conditions, this also extends to cases where the parent is resident in another EU or EEA country. The French subsidiaries of the Swiss parent included two directly held compa…