commiss decis aid scheme implement franc headquart logist centr notifi document number french text authent text eea relev ec commiss european commun regard treati establish european commun subparagraph articl thereof call interest parti submit comment pursuant provis cite regard comment procedur ecofin council adopt code conduct busi taxat view tackl harm tax competit line undertak gave connect code commiss publish notic applic state aid rule measur relat direct busi taxat hereinaft call notic restat determin appli rule strictli accord principl equal treatment present procedur view context present procedur concern exclus scheme taxat headquart logist centr hereinaft call scheme cover scheme expatri allow paid member staff headquart logist centr post temporarili franc abroad unit group concern letter date februari commiss request inform scheme french author furnish request inform letter date commiss decis initi procedur publish offici journal european commun invit interest parti submit comment letter date octob commiss receiv comment franc repli letter initi formal investig procedur commiss receiv comment american chamber commerc franc letter date januari forward franc give opportun react commiss receiv comment subject franc interest parti ii descript measur introduct scheme enter forc notifi articl treati circular director gener tax date januari set administr arrang relat scheme state headquart approv tax author avail circular circular form legal basi rule relat scheme circular director gener tax date octob take effect financi year begin januari amend circular enabl tax author approv headquart logist centr systemat review year latest circular date januari scheme intend resolv difficulti inher determin transfer price context commerci relat headquart logist centr franc group compani abroad price difficult practic depend practic applic taxpay tax author arm length principl laid oecd arm length principl intern standard agre oecd member countri determin transfer price tax purpos view avoid firstli doubl taxat taxabl incom tax evas involv incom scheme make determin profit subject corpor tax altern manner quot cost quot method method consist determin taxabl profit appli mark oper expenditur headquart logist centr mark determin tax author taxpay request method form part tradit method base comparison similar transact enterpris recommend oecd report transfer price hereinaft call oecd report compar transact method involv direct comparison price charg transact enterpris charg transact enterpris cost method base indirect determin arm length price method involv set mark case case basi analog mark up charg compar situat enterpris light function perform asset risk assum market condit factor result adjust made mark charg compar uncontrol situat make suit peculiar intra group transact concern mark appli cost incur supplier good servic taxabl profit calcul result obtain appli mark cost consid equival arm length price transact enterpris oecd report mention possibl enterpris draw prior transfer price agreement tax author concern type agreement make determin advanc transact enterpris seri criteria includ method factor comparison adjust made thereto view determin transfer price applic transact period oecd nomenclatur prior transfer price agreement unilater involv tax author taxpay multilater involv tax author agreement beneficiari assur amount taxabl profit determin procedur call question author author concern lifetim agreement subject situat enterpris circumst recognis agreement remain unchang scope circular januari hereinaft call circular headquart logist centr legal form compani regist offic franc perman establish foreign compani addit headquart form depart attach industri commerci branch activ exist enterpris hold compani hold foreign french invest hand logist centr attach industri commerci branch activ exist enterpris risk confus activ princip enterpris lastli logist centr constitut branch activ attach hold compani attach headquart circular stipul headquart logist centr entiti liabl corpor tax franc ordinari tax law econom entiti liabl corpor tax form compani establish franc perman establish franc foreign compani separ liabl tax simpli branch activ domest compani activ headquart logist centr depend intern group control franc abroad circular point scheme reserv exclus function perform behalf enterpris group headquart logist centr suppli servic enterpris group profit determin accord ordinari law circular state french foreign compani french foreign control consid belong group accord condit ordinari tax law restrict intern charact group scheme limit specif sector economi area franc circular headquart logist centr suppli servic predominantli compani regist offic franc establish compani group situat franc state condit met total amount current oper expenditur servic suppli headquart logist centr compani perman establish group situat abroad account half total amount current oper expenditur elig activ headquart logist centr carri wide rang activ list exhaust circular gener activ difficult place commerci ow group specif natur elig activ consist suppli servic natur econom activ beneficiari correspond administr function manag control function suppli servic essenti preparatori ancillari natur constitut directli product function headquart circular refer inter alia administr servic data process servic relat intern administr group human resourc servic personnel manag train develop pai pai manag system commun public relat servic logist centr circular refer inter alia function storag packag label distribut raw materi suppli finish product good administr activ link function wareh manag packag raw materi suppli finish product good transport deliveri good compani group circular state view natur servic suppli statu recipi servic entiti taxabl franc belong group headquart logist centr obtain tax author assur amount profit liabl corpor tax call question determin basi profit margin activ cover function headquart logist centr method calcul taxabl profit amount taxabl profit calcul appli mark amount current oper expenditur accord cost method calcul method base relev oecd recommend franc consid make ensur complianc arm length principl prevail independ econom entiti justifi natur rule govern intern taxat cross border profit fact circular tax base determin cost method consid reflect profit earn arm length condit author approv subject condit headquart logist centr invoic servic basi cost profit margin set circular state invoic result find addit result subject corpor tax accord ordinari tax law invoic constitut hidden advantag headquart logist centr presum distribut incom beneficiari lead applic distribut tax method fix taxabl profit appli scheme impact taxat financi product involv pursuit activ headquart logist centr incom secur capit gain loss result sale fix asset circular mark set case case basi separ headquart logist centr light characterist activ context pursu level correspond profit achiev independ enterpris arm length condit mark low activ carri pure administr higher activ strateg natur tax author account set mark natur job need perform task headquart logist centr employ highli skill staff give rise applic higher mark employ low skill staff mark set cast stone lifetim headquart logist centr modifi light natur context activ beneficiari requir declar tax author financi year occur circular octob januari mark determin afresh part systemat review approv year circular oper expenditur account calcul taxabl profit determin accord ordinari law rule corpor tax expenditur correspond miscellan expens incur financi year regist debit side taxpay revenu expenditur account includ interest payment amortis oper expenditur includ disburs reimburs headquart logist centr condit laid ordinari law scheme provid articl ii gener tax code disburs occasion incident natur tradit area activ headquart logist centr regard incident amount exce current oper expenditur exclud disburs percentag disburs includ expenditur subcontract activ provid expenditur respect activ repres half oper expenditur exclud subcontract circular commiss learnt exclus tax base applic part subcontract expenditur exce half oper expenditur exclud subcontract deduct base subject applic mark inclus subcontract expenditur basi calcul taxabl profit limit part exceed current oper expenditur exclud subcontract annual flat rate tax annual flat rate tax imposit forfaitair annuel ifa headquart logist centr taxabl amount laid bracket ifa scale fix articl septi gener tax code amount ifa depend amount turnov financi incom tax bracket eur relat turnov financi incom eur eur ifa tax bracket eur relat turnov financi incom greater eur million ifa tax bracket eur eur applic beneficiari scheme ifa paid state march financi year question payment part payment payment subsequ due current year year exempt ifa set corpor tax consecut year equival total exempt tax exempt payment ifa shorter period tax due year period exce ifa part payment constitut mere tax deferr iii ground initi procedur open formal investig procedur commiss consid measur constitut state aid meet cumul criteria articl treati commiss identifi potenti aid element firstli cost born headquart logist centr account calcul taxabl profit cost method partial exempt ifa headquart logist centr benefit result lower taxat ordinari law thirdli author room manoeuvr set mark applic cost method favour enterpris group lastli part preliminari assess commiss consid derog articl treati appli scheme iv comment interest parti american chamber commerc franc hereinaft call american chamber commerc consid scheme confer financi advantag beneficiari reason constitut aid firstli american chamber commerc consid advantag scheme confer beneficiari enabl prior knowledg method determin applic taxabl incom scheme akin unilater prior transfer price agreement taxpay tax author constitut administr practic encourag oecd fact cost relat disburs subcontract expenditur partial account basi appli cost method keep strictest applic oecd rule transfer price requir total exclus cost notabl intern intra group transact concern form suppli servic subcontract expenditur concern american chamber commerc consid inclus expenditur basi appli cost margin correspond econom realiti intermediari franc inclus give rise problem tax deduct group compani benefit servic view unjustifi applic margin subcontract expenditur potenti deduct thirdli american chamber commerc consid ifa definit tax credit corpor tax due year applic ifa tax base corpor tax rate appli determin result greater eur entiti benefit scheme oblig pai higher definit tax ifa ceil impact ifa ceil provid scheme decis impact advantag lastli american chamber commerc consid french tax author rigor strict negoti determin mark applic oper carri headquart logist centr advantag li method set mark involv appli cost method american chamber commerc confirm applic paragraph circular quot mark set case case basi light characterist headquart activ context pursu level correspond profit achiev independ enterpris arm length condit quot event american chamber commerc point legitim expect member benefit scheme knowledg transfer price charg correspond arm length price comment franc comment franc challeng categoris headquart logist centr scheme aid argu fulfil criteria articl treati absenc advantag franc consid correspond taxat appli headquart logist centr applic entiti act independ exclud presenc advantag born mind arm length principl appli situat involv intern transact enterpris principl gener rule determin taxabl profit firm act intra group context calcul advantag franc consid method appli determin taxabl profit headquart logist centr correspond oecd make obtain arm length price oecd consid cost method control transact account suppli servic exclus disburs subcontract expenditur basi calcul taxabl profit franc observ order exclud basi cost occasion incident natur wholli independ exercis normal function headquart logist centr differ threshold subcontract expenditur current oper expenditur exclud subcontract compar disburs oper expenditur exclud disburs justifi make scheme reflect econom realiti close distinguish activ headquart logist centr agent disburs intermediari subcontract regard subcontract expenditur franc consid scheme oecd recommend applic cost method activ agent intermediari advantag oecd advoc exclus ceil subcontract expenditur tax base applic lower rate expenditur part current oper expenditur relat thereto franc solut adopt circular favour advoc oecd determin arm length price french measur constitut advantag set mark permit applic cost method franc effect determin case case basi adjust year author enjoi room manoeuvr capabl favour enterpris ow fact set rate carri gener case case basi light natur context pursuit activ financi year occur result mark set case case basi taxat headquart logist centr fact close resembl deriv applic arm length principl standard applic intra group transact limit ifa bracket scale fix articl septi gener tax code franc consid limit confer advantag ifa advanc corpor tax ow beneficiari ultim born enterpris deficit situat aris case headquart logist centr principl subject corpor tax applic cost method make determin taxabl profit surplu top gross oper expenditur applic advanc system constitut ifa repres advanc payment ordinari compani larger headquart logist centr view fact maximum amount ifa eur cash flow advantag stem exempt ifa neglig fact applic cost method enabl taxpay advanc tax ow avoid disput tax author franc opinion consid advantag disput avoid condit cost method met tax base headquart logist centr determin accord arm length principl franc applic principl constitut advantag compar analyt determin tax base provid ordinari law advantag justifi natur gener scheme french tax system compli oecd recommend taxat suppli servic control enterpris fact scheme promot remov uncertainti applic corpor tax intern intra group context accord oecd recommend conclus prior transfer price agreement absenc state resourc franc scheme safeguard resourc state altern method appli make effect tax activ complet miss corpor tax franc scheme franc obtain tax revenu activ franc view give rise market parti determin absenc effect competit trade franc view scheme affect competit intra commun trade servic benefit measur definit quot externalis quot extra market regard logist centr franc consid activ add product serv absenc select lastli franc view scheme select gener tax polici measur open econom sector intern group control franc abroad fact scheme direct exclus intern oper justifi oper face problem transfer price risk doubl taxat fact measur select special determin price enterpris cover scheme fiscal impact enterpris busi intern level lastli measur open econom oper suppli legal form intern intra group servic ancillari product market activ select vi assess measur introduct comment franc interest parti commiss adher posit letter juli open formal investig procedur consid observ submit franc interest parti remov doubt express take view aspect tax scheme scrutinis constitut unlaw oper aid incompat common market advantag franc interest parti invok absenc advantag link recours flat rate taxat method base determin taxabl profit accord arm length principl multin context characteris differ actual level taxat countri concern enterpris carri transact commerci relat accru profit theoret liabl manipul taxpay involv econom interest nation tax author concern unilater correct taxabl profit taxpay determin heavier taxat doubl taxat relev transact franc view aim recours cost method elimin doubl taxat scheme confer advantag point french tax system fact compli arm length principl determin taxabl profit intern transact control enterpris level domest law articl gener tax code bilater doubl taxat treati conclud franc partner countri articl gener tax code tax adjust procedur quot establish incom tax payabl enterpris depend control enterpris situat franc quot regard quot profit indirectli transfer increas reduc purchas sell price mean quot case profit compli arm length principl quot includ result shown account quot french enterpris concern articl specifi absenc specif evid support adjust quot taxabl profit determin comparison similar oper enterpris quot doubl taxat treati conclud franc make part make compar adjust profit accru commerci relat relat enterpris establish contract state accord arm length principl set articl oecd model convent commiss point connect cost method determin taxabl profit headquart logist centr form part tradit method list oecd report transfer price commiss consid natur servic suppli headquart logist centr make difficult determin directli taxabl profit franc applic indirect method determin taxabl profit justifi method take form estim involv set gross profit margin parti transact enterpris sought payment parti consid accept arm length condit perform compar function determin mark framework applic cost method prior agreement valid seri indetermin econom transact constitut method appli arm length principl strongli encourag oecd conclus commiss confirm posit object principl cost method prior agreement set mark relat intra group transact franc scheme scrutini commiss note franc interest parti contest fact taxabl profit accru headquart logist centr actual simpli estim lastli possibl obtain prior approv author cover rate return indefinit potenti larg number transact constitut special treatment compar analyt determin profit examin detail specif applic franc method taxat set mark set mark point circular scheme concern quot activ practic extrem difficult place commerci ow group specif natur quot fact activ circular refer concern function quot essenti preparatori ancillari charact constitut directli product function quot hand commiss consid activ circular refer vari fairli consider commerci refer made quot strateg servic quot quot research develop servic quot mention circular point servic constitut econom activ commerci activ potenti account signific fraction ad produc multin group lastli fact activ headquart logist centr subcontract bear wit commerci natur oper commiss consid applic cost method prior set rate return activ carri headquart respons strateg research develop servic period year give rise calcul result analyt determin take view method differenti treatment order determin transfer price transact enterpris direct estim price compar charg similar transact independ enterpris inappropri method justifi natur french tax system mean point notic commiss verifi method determin margin leav tax author degre discret light comment submit franc interest parti mark effect set case case basi refer characterist activ carri taxpay context carri evid commiss possess support find author room manoeuvr set mark usabl cost method favour enterpris group lastli commiss take note amend circular introduc formal investig procedur open provid systemat review latest year agreement light condit activ headquart logist centr carri conclud determin mark scheme confer advantag headquart logist centr group belong disburs subcontract activ regard inclus disburs cost method commiss consid activ fact occasion ancillari natur signific ow fact ceil current oper expenditur exclud disburs correspond substanti amount take view decis factor elimin supposit advantag fact order exclud expenditur base cost method tax base disburs fulfil common condit set articl ii gener tax code articl exclud tax base corpor tax purpos quot sum reimburs intermediari carri expenditur behalf princip intermediari answer princip enter expenditur suspens account provid tax author proof natur exact amount expenditur quot fact scheme scrutini ordinari law rule make rule exist advantag arrang analyt determin taxabl profit case activ relat disburs give rise taxabl profit regard exclus subcontract activ method calcul taxabl profit condit refer point oecd transfer price principl advoc case involv applic cost method appli margin cost inher exercis function agent intermediari reduc mark appli cost servic connect oecd report consid enterpris bear cost behalf enterpris pass cost appli margin prevent commiss remark situat ensur advantag enjoi beneficiari correctli account make determin taxabl profit compli arm length principl conclud franc appli systemat exclus expenditur relat subcontract activ evalu case case basi appli specif mark activ intermediari altern solut involv reduc mark activ envisag hand reduc mark determin lower taxabl profit hand extend basi appli mark produc larger taxabl profit commiss find exclus subcontract expenditur justifi limit total exclud subcontract expenditur subcontract activ consider calcul tax base lastli commiss consid ceil total expenditur exclud subcontract repres consider amount revenu systemat escap taxat point notic advantag provid reduct tax burden commiss observ cost born headquart logist centr account calcul taxabl profit cost method exclus liabl constitut reduct tax burden mean point notic ifa regard exempt annual flat rate tax ifa form part scheme commiss agre franc argument advantag limit situat headquart logist centr gener tax amount eur difficult assess impact limit applic ifa exclus bracket system scheme scrutini fix tax revenu presumpt prevent commiss observ beneficiari turnov determin autonom object relat elig expenditur headquart logist centr partial exempt ifa grant scheme constitut franc acknowledg advantag form tax defer ifa paid deduct corpor tax headquart logist centr liabl tax cost method impli exist taxabl profit ifa avoid scheme higher amount paid corpor tax differ tax year involv tax defer addit recit commiss rule partial exempt ifa constitut definit tax exempt tax defer repeat consecut year fact amount question modest suffic rule exist advantag mean articl treati franc furnish evid show condit applic de minimi rule laid commiss regul ec applic articl ec treati de minimi aid compli present case notabl sector exclud rule limit cumul conclus advantag conclud inclus subcontract expenditur exempt ifa constitut advantag beneficiari enterpris group belong state resourc present case reduct amount tax stem reduct tax base reduct amount ifa lead reduct tax revenu state resourc franc argument tax revenu increas result scheme immateri assess commiss refer exclus resourc state benefit taxat headquart logist centr determin condit ordinari law effect competit trade member state scheme scheme direct taxat principl open sector activ connect product commerc commiss rule beneficiari enterpris group belong activ sector intra commun trade intens possibl effect trade applic flat rate tax scheme exclud accord case law court justic european commun state point notic quot mere fact aid strengthen firm posit compar firm competitor intra commun trade conclus drawn intra commun trade affect quot lastli fact scheme question appli multin context strong indic influenc inter state econom activ distort competit european level select justif natur gener scheme system franc scheme select gener tax polici measur open econom sector geograph area legal form commiss disput scheme open sector economi irrespect geograph locat legal form consid suffic rule select charact measur firstli measur limit suppli servic correspond function manag administr coordin control activ preparatori ancillari product commerci function perform context intern group directli product commerci activ activ take place context intern group exclud activ capabl benefit advantag identifi benefit scheme limit exclus headquart logist centr provid servic predominantli compani situat franc commiss observ entiti provid servic predominantli compani locat franc exclud benefit measur predomin condit view light ratio total amount current oper expenditur servic suppli entiti question group compani regist offic situat franc perman establish group compani situat franc total amount current oper expenditur servic suppli beneficiari establish franc entiti establish franc satisfi predomin condit benefit advantag scheme fact transact compani branch situat abroad face difficulti headquart logist centr determin taxabl profit lastli fact logist centr constitut depart attach industri commerci branch activ exist enterpris hold compani exclud scheme strengthen select measur franc present argument connect procedur circular state limit motiv avoid confus activ group state limit appli headquart justif differenti natur scheme french author furnish requir point notic inform explain extent oper carri headquart logist centr deserv favour tax treatment entiti carri oper satisfi abovement predomin criterion logist centr attach enterpris franc hold compani present case econom rational measur make function effect tax system measur deem justifi natur gener scheme system commiss confirm preliminari posit select charact measur commiss point lastli subcontract activ receiv tax treatment ceil confer select charact differenti treatment conclus exist aid conclud measur question constitut aid mean articl treati advantag repres exclus expenditur basi calcul taxabl profit partial exempt ifa scheme justifi natur gener scheme french tax system compat state decis open formal investig procedur scheme question prima faci qualifi derog laid articl treati procedur french author interest parti present argument compat scheme common market commiss doubt confirm derog articl treati concern aid social charact grant individu consum aid make good damag caus natur disast except occurr aid grant area feder republ germani appli case derog articl treati authoris aid promot econom develop area standard live abnorm low underemploy appli scheme question unlimit territori scope similarli scheme fall categori project common european interest elig derog articl treati seek promot cultur heritag conserv qualifi derog articl treati tax advantag grant scheme qualifi derog articl treati authoris aid facilit develop econom activ econom area aid advers affect trade condit extent contrari common interest amount oper aid reliev beneficiari compani group belong charg born conclud scheme incompat common market recoveri measur question implement notifi commiss accord articl treati cover prescript constitut aid forc constitut illeg aid illeg grant state aid found incompat common market natur consequ find aid recov recipi accord articl council regul ec march lai detail rule applic articl ec treati recoveri aid competit posit exist aid grant restor lack preced involv applic state aid rule similar case alleg lack clariti commun polici state aid justifi departur basic principl articl regul ec quot commiss requir recoveri aid contrari gener principl commun law quot case law court justic commiss decis make practic establish result commiss action legitim expect exist part beneficiari measur aid grant accord commun law order recov aid infring gener principl commun law judgment van den bergh en jurgen court rule quot court consist held trader regard institut rise justifi hope reli principl protect legitim expect hand prudent discrimin trader foreseen adopt commun measur affect interest plead principl measur adopt quot franc invok exist legitim expect part beneficiari scheme submit commiss specif argument approach case law court justic commiss account except circumst justifi accord articl regul ec recoveri aid illeg grant recoveri contrari gener principl commun law respect recipi legitim expect present case commiss note french scheme present similar system introduc belgium royal decre decemb taxat coordin centr scheme concern intra group activ lai specif rule determin tax base decis sg commiss view scheme give rise aid mean articl treati decis publish fact commiss rais object belgian scheme coordin centr made public time fourteenth report competit polici answer parliamentari question circumst commiss note decis belgian scheme coordin centr adopt french scheme adopt present form set circular januari octob commiss conclud beneficiari scheme legitim expect aid recov requir recoveri vii conclus commiss find aspect french scheme constitut state aid mean articl treati franc unlawfulli implement aid breach articl treati posit commiss past regard tax measur multin rise part beneficiari scheme legitim expect scheme constitut state aid commiss find recoveri aid run counter gener principl respect legitim expect decid requir recoveri aid adopt decis articl exclus subcontract expenditur calcul tax base applic limit bracket scale annual flat rate tax implement franc framework circular januari director gener tax headquart logist centr scheme constitut state aid illeg incompat common market articl franc requir abolish effect tax period date notif decis aid element govern circular refer articl arrang appli cost method exclus subcontract expenditur basi calcul taxabl profit arrang partial exempt ifa articl franc inform commiss month notif decis measur compli articl decis address french republ brussel commiss mario monti member commiss oj oj oj footnot offici tax bulletin januari offici tax bulletin octob quot transfer price guidelin multin enterpris tax administr quot oecd compani paid ifa march set sum part payment balanc due date tax definit due treasuri footnot footnot paragraph circular paragraph circular oj case philip morri holland bv commiss ecr commiss decis ec march fiscal aid german airlin form depreci facil oj oj case van den bergh en jurgen bv commiss ecr paragraph case rsv commiss ecr answer written question oj