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France Launches New Centralized Transfer Pricing Program
French Tax authorities recently launched a new transfer pricing program - Mission d’expertise juridique et économique internationale (MEJEI).
Formerly, APAs and MAPs were separately handled by Direction générale des finances publiques (Bureau CF3)and Direction de la legislation fiscale (Bureau E1), respectively, with littlecollaboration and frequent inconvenience to the affected parties.
The new French centralized program – MEJEI can be compared to the current treatment of APAs and MAPs in the United States. Under this new program, one team will be responsible for both APAs and MAPs. Further, similar programs are expected to be carried out more efficiently and effectively.
Nair & Co.’s International Tax team anticipates the new MEJEI program to be beneficial for taxpayers. Reasons for launching the MEJEI include:-
* Lack of cooperation between Bureau CF3 and Bureau E1
* Incompatible case resolutions, in certain situations, by the above bureau
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