France - Leveraged Transactions under Scrutiny by French Lawmakers
- F. Burnat
- Derivatives & Financial Instruments, 2012 (Volume 14), No 4
- 5 July 2012
The fourth Amended Finance Act for 2011 introduced a limitation on the deductibility of interest expense incurred in relation to the purchase of shares of a company if the decision to purchase the company is made in France and the control or influence over the target company has been located in France during the 12 months following the acquisition of the controlling shareholding. The author considers this rule, the purposes of which is to disallow interest expense in relation to share purchases entirely decided by foreign sponsors with no French nexus.