The French Supreme Administrative Court on 25 April 2022 issued its decision in the Rubis case, which dealt with whether the application of the French CFC rules is compatible with the freedom of capital movement provided for under the EU treaty, and subsidiarily on whether or not the foreign tax regime in question is favourable and thus triggers the application of the CFC rules.
The French CFC rules stipulate that where a French corporate tax entity carries out an enterprise or holds, direc…