In their recent paper, NERA Senior Managing Director Dr. Emmanuel Llinares and Bredin Prat Partners Pierre-Henri Durand, Julien Gayral, and Yves Rutschmann delve into the escalating legal risks multinational corporations face in France, primarily focusing on the changes introduced by the 2018 Anti-Fraud Act. The paper, “The Criminalization of Transfer Pricing in France: What the Future Holds,” underscores the increasing likelihood of legal action associated with allegations of tax evasion and irregular transfer pricing arrangements. The authors argue that French authorities are progressively adopting a stricter stance on transfer pricing, intensifying audits, and levying heavy penalties on entities perceived to contravene established tax laws and regulations.

The authors offer two case studies highlighting scenarios multinational companies are likely to encounter and conclude by emphasizing the need for companies to reassess their transfer pricing strategies and adopt robust measures to ensure they comply with the changing regulations.