France vs SAS Roger Vivier: JUDGMENT
Case Information
- Court: Cour Administrative d’Appel de Paris, 9th Chamber
- Case Number: 23PA01130
- Applicant: SAS Roger Vivier Paris
- Defendant: French Ministry for the Economy, Finance, and Industrial and Digital Sovereignty
- Judgment Date: 13 December 2024
The Cour Administrative d’Appel de Paris upheld significant portions of the tax adjustments imposed on SAS Roger Vivier Paris (RVP) for the years 2012–2014. The French tax authorities argued that RVP, as part of a group involving foreign parent entities and related companies, engaged in practices leading to profit transfers inconsistent with the arm’s length principleThe Arm’s Length Principle (ALP) is a cornerstone concept in international taxation and transfer pricing. It requires that transactions between related parties, such as subsidiaries or affiliates within a multinational enterprise (MNE), mirror those that would occur between independent entities under similar circumstances. This principle ensures that each entity within an MNE is compensated fairly and transparently, based on the... More as outlined in Article 57 of the French General Tax Code. The adjustments addressed insufficient re-invoicing for brand promotion expenses, failure to apply appropriate margins, and substantial discounts on unsold inventory returned to its supplier, Tod’s.