Transfer Pricing Forum -- France
1 March 2011
By Sébastien Gonnet
In this article from BNA International's Transfer Pricing Forum, NERA Principal Sébastien Gonnet provides an overview of the valuation techniques available for intangibles valuation, focusing specifically on the methods generally recommended by French regulations, and the most commonly used methods by the French Tax Administration (FTA). Mr. Gonnet notes that French Court cases have provided limited guidance with respect to intangibles valuation, and the FTA does not systematically provide its view with respect to recent intangibles valuation debates (for instance, following the recent Canadian Federal Court of Appeal decision in GlaxoSmithKline Inc. v. The Queen, F.C.A). Given that intangibles valuation is a key topic for multinational enterprises in France and many other countries, Mr. Gonnet believes the best option for tax payers is to follow recognized valuation techniques as well as guidance from the OECD. Ultimately, the valuation of intangibles is not a "French" issue but a global issue that necessitates global answers and guidance.
