Actuality Relating To Mergers

This is a summary of several positions confirmed by the French Tax Authorities since two years.

Dissolution by gathering of all shares within only one hand: can it benefit from the favourable tax regime of mergers?

No, the favourable tax regime cannot apply to dissolutions by gathering of all shares within only one hand.

Mergers realised within a brief period of time after the acquisition: do the Tax Authorities accept them?

The above mergers realised between an investment company and the target company within a short time after the acquisition of the latter may lead the Tax Authorities to look for a possible misappropriation of corporate funds.

Is the way a company can absorb the other (or vice-versa) significant?