Recent case law has further clarified the scope of the “holding animatrice” status, a qualification that enables the application of several tax relief mechanisms, including the well-known Pacte Dutreil.
In a decision dated 5 September 2022, concerning the ISF reduction (which applied until 2018), the Paris Court of Appeal reaffirmed that signing an animation agreement is not sufficient to qualify a company as a holding animatrice if there is no evidence of the actual implementation of such animation activities.
In the case at hand, the management reports and minutes of general meetings failed to demonstrate the holding company’s active role, due to the lack of concrete evidence of strategic initiatives or group leadership.
Furthermore, the veto right granted to the holding company could not be construed as the implementation of a strategy, but rather as a mere “right to oppose initiatives developed by others.”
To mitigate the risk of a challenge to the holding animatrice qualification, it cannot be emphasized enough that evidence of group leadership and strategic direction is essential. Particular attention must therefore be paid to the drafting of group legal documentation.
Learn more:
https://www.dalloz.fr/documentation/Document?id=CA_PARIS_2022-09-05_2108463#_
