French General Tax Code
In forceIn the event of the transfer of securities mentioned in
article 118, at 6° and 7° of
article 120and to
Article 1678 bisas well as treasury bills on formulas and entered on the balance sheet of a company at the close of the first financial year opened as from 1 January 1993, the result of the disposal is for tax purposes calculated in relation to their acquisition cost, including the amount of income acquired on the date of purchase of the securities and not yet deducted from taxable income less a sum equal to the amount of income from these securities, acquired and not taxed at the start of this financial year.
When these securities are contributed as part of a merger or a similar transaction placed under the regime defined in the
article 210 A, and are subsequently disposed of, the result of the disposal of the securities by the acquiring company or by the company receiving the contributions is determined in accordance with the procedures set out in the first paragraph.
For each financial year, the difference between the amount of income acquired on the date of acquisition of the securities concerned and not yet deducted from taxable income and that of income from these securities, acquired and not taxed at the start of this financial year, is indicated in the appendix to the declaration provided for in
article 53 Aand is determined on the basis of a statement showing, for each category of securities of the same kind, the two terms of this difference as defined above. These provisions apply to the acquiring or transferee company in respect of securities held following a merger or similar transaction carried out under the conditions set out in the second paragraph. This statement must be produced at the request of the administration.
