The French Supreme Court (Conseil d’Etat) on 2 February 2022 issued its decision on a case concerning the tax treatment of capital gains derived by a French resident on the disposal of an interest in a US partnership.
The case concerned a French resident who held a 25% interest in a US partnership treated as a flow-through entity in the US. The taxpayer disposed of his partnership interest in 2002 against an initial payment and complementary payments made until 2008. The taxpayer declared th…