Fixed establishment (“supplier”)

A company established in the UK operated services on mobile and Internet networks by resorting exclusively to services from French operators and server centres in order to carry out its activity.

The French Cour Administrative d’Appel notes that it results from the proceedings that the company did not own any immovable property nor any staff in the UK, that it lacked an operating structure, its head office being located at a simple business address centre and that it did not declare in this country any turnover for the years 2004 to 2008 except for management fees as remuneration for administrative services. Furthermore, the tax raids conducted within the scope of article L.16 B of the French Tax Procedure Code (FTPC) revealed that the managing director, numerous accounting and commercial documents, some equipment and the address used by the company with its suppliers and its bank were located in France.

Thus, the Court held that the company should be regarded as having a fixed establishment in France, as defined by article 259 of the French Tax Code (FTC), from which it provided services for consideration.

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