Certain results obtained in litigation
First repeal of a French tax regulation for lack of conformity with an EU directive. Acknowledgement of a general principle of law. First positive application of EU directives regarding VAT in France
Non-discrimination clauses in tax treaties reduce the scope of the 3% annual tax on the fair market value of real estate held by foreign entities: one of the rare decisions of the Assemblée Plenière regarding tax matters, and, until recently, the only one regarding international taxation. The distinction and identification of situations is assessed considering the taxable event
Dividends and the right to deduct input VAT (first referral for a preliminary ruling of the French Council of State to the CJCE relating to tax matters)
Major cases with successive steps
Demonstration of the incompatibility with the law of the European Union and international treaties regarding double taxation - Situation of related proceedings conducted simultaneously in Belgium and in France
Exemption of the CSG and CRDS social security contributions on professional income from foreign sources
CJUE 3 April 2008 C-103/06 Derouin / URSSAF and subsequent rulings of the CA Paris of 6 November 2008 and 26 March 2009 and the C. Const of 13 December 2012 No. 2012-659 DC pt 15
Application of French tax regulations and barrings of the “abus de droit” (CE Ass 8 April 1998 regarding prejudicial questions of the CA Paris of 1 July 1997). Strict liability of financial intermediaries of mutual investment funds regarding their performance obligations (Cass 1 December 1998, CA Paris 29 March 2000, Cass 24 September 2002, CA Versailles 14 December 2004 as well as past decisions)
Increased capital duty on corporate mergers and capital increases through the incorporation of reserves
Many favorable rulings and judgments. Solution confirmed by the CJCE 13 February 1996 Bautiaa, which led to the elimination of this tax
Other major precedents
Pursuant to an official interpretation by the Department of State in a long-standing case before the US Tax court, the IRS no longer asserts that US income taxpayers living in France are precluded from claiming the foreign tax credits in relation to the French CSG and CRDS, thus withdrawing a position originally posted in 2008 on the website of the US embassy in France and followed by broad audit campaign. This solution is in line with the expert report on French law filed in the interest of the taxpayers. US Tax court n°8055-12 ESHEL / Commisioner of Internal revenue (USA)
Computation of tax credits on foreign income “equal to French tax”: Review of the CE rulings of 26 July 2011 Türckheim et Saucé (DF 2011 c. 558) and filing of a complaint to the European Commission; formal notice from the European Commission to the French Government on 16 October 2014; alignment of the administrative guidelines (Bofip December 2014 / July 2015) ; Judgment of the administrative court of appeals of Paris 7 April 2016 n°12PA04303 ; Reasoned opinion from the European Commission on the « loss » of foreign tax credits where a French individual resident taxpayer is in deficit for the fiscal year when he/she received the foreign source income that has borne a withholding tax in the source country, 13th July 2017.
Intervention of the International Association of lawyers in support of the appeal of a Ukrainian lawyer to a search of his firm’s premises. Demand for specific legislative guarantees (first step in this direction).
Exclusion from the VAT regime of income from investments performed by a taxable person not acting as such or outside of the scope of VAT. Reversal of preceding case law
Territorial scope of VAT deductions applicable to a U.S. bank with a subsidiary in France and another subsidiary in Monaco – Confirmation of the solutions obtained at first instance and on appeal (Monaco Court of Appeal 21 June 1994)
Tax discharge whenever the administrative approach to the rectification of tax bases is excessively brief or hypothetical
Many subsequent rulings of the CE and the CAA
Capital gain on the sale of shares of a French company predominantly invested in real estate by a foreign investor
The repayment by the purchaser of the debt obligation of current account held by the transferor on the transferred company does not form part of the capital gain on the sale of shares (CAA Versailles 3rd March 2020, n° 19VE00113, Company Croë Switzerland)
No permanent establishment in France of the real estate investment fund CEREP during the purchase, renovation and sale of the building Imprimerie Nationale in Paris (Cour Administrative d’Appel de Paris 14 décembre 2017, n°15PA02628, Cerep Imprimerie).
Proof contrary to the presumptions of Article 238 A of the CGI report
General anti-avoidance rules
No abuse of law where a scheme generates no corresponding tax saving
No act of mismanagement where the challenged payment is an integral part of an overall arrangement
Important (and public) cases in progress
Tax allowance for holding period on capital gains realized by individuals upon the sale of shares and previously placed on tax deferral
After the ruling C-662/18 and 672/18 of the CJUE on 18th September 2019 and the decision on the 3rd April 2020 of the Conseil Constitutionnel n°2019-832/833 QPC, the debate before the tax judge is moving towards the interpretation of the law (article 150-0 D of the French general tax code) in the light of the European Merger directives on the common system of taxation of mergers and similar transactions (concluding pleas before the administrative court of Paris, 12 June 2020).
Challenge of the French withholding tax applied on dividends from French sources paid to the National pension fund of Korea since 2010, based upon non-discrimination under both the double taxation treaty and the EU free movement of capitals. Contribution to drafting briefs before the French Conseil d’Etat and a French administrative court of appeals
« le meilleur fiscaliste de sa génération », « la Rolls Royce des fiscalistes »
« le spécialiste référent du droit fiscal en France »
« universellement reconnu comme un polymathe », « sans équivoque le meilleur des meilleurs car il pousse les limites de la créativité fiscale »
“an eminent practitioner” known for his “creativity, adaptability and tireless work ethic”.
Seul Français parmi les 25 fiscalistes mentionnés dans le guide mondial “Best of the Best”
« un personnage formidable du marché français » et un « brillant avocat de contentieux »
Lauréat aux Trophées du droit dans la catégorie des meilleures équipes spécialisées en contentieux fiscal. Philippe Derouin a notamment été reconnu par le jury pour être “un avocat visionnaire, qui sait trouver des solutions innovantes à des situations complexes” et “un excellent technicien connu pour sa combativité devant les juges“
« le ‘sidéral’ Philippe Derouin au bureau de Paris est un génie dès qu’il s’agit de questions fiscales »
« Lawyer of the year – Paris tax » dans cette spécialité pour 2014-2015
“an irresistible force with an enviable track record in significant tax disputes”.
Le « remarquable » Philippe Derouin, doté d’une « expertise fiscale exceptionnelle », se distingue par « son incomparable expérience, sa technicité, sa très grande sureté de jugement et un incroyable savoir-faire de la chose fiscale »
« Philippe Derouin impressionne avec son approche pragmatique, couplée à un savoir pointu et une grande assurance »
« l’un des meilleurs fiscalistes à Paris, offrant de superbes connaissances ainsi qu’un fort potentiel technique »
« l’un des meilleurs fiscalistes de France et même d’Europe »
Philippe Derouin is highly reputed for his tax litigation expertise and extensive tax advisory practice. One market commentator is impressed by his “brilliant career” in the field, adding that: “When he speaks, people really listen.“