Mergers And Partial Business Transfers Realised At The Net Book Value

The contributions realised in the scope of mergers or comparable operations may be carried out under certain conditions, at the net book value. But article no.223 R of the French General Tax Code makes it compulsory to realise at the market value (as it is normally superior to the net book value) real estate transfers, in the broad sense of the term, between tax consolidated companies, for fear to be obliged to acknowledge a subsidy.

However the Tax Authorities agree, depending on the de facto circumstances proper to each matter and in view of a precise file, that the difference between the actual value of the goods contributed and their net book value should not be considered as an indirect subsidy.