Strategizing Multinational Tax Risks

The French Ministry of Finance has released welcome initiatives comprising a list of aggressive tax structures, ten commitments for ways of working upon commencement of an audit, appointment of a national committee of experts in complex cases, and creating a R&D tax credit advisory board to provide consultation services to the taxpayer.

A link to PwC’s Tax Insights summary is provided for reference:

Click to access pwc-france-mof-transparency-measures.pdf

10 Audit commitments:

1. Initial meeting to inform taxpayer of documents to be requested
2. Ways of working in the tax audit
3. First meeting devoted to understanding the business
4. Milestone meetings
5. Indicating the main audit objectives
6. Taking consistent positions of similar issues in the same industry
7. Meeting deadlines
8. Providing a recourse process with access to auditor’s superior
9. Maintaining confidentiality and tax secrecy as imposed by the law
10. Identifying an individual within FTA for post-audit support procedures

This is a very welcome initiative that will provide win-win opportunities for audits and information requested.  Additionally, this process serves as a Best Practices memorandum of understanding that should be discussed with auditors from other jurisdictions.