Thin capitalization rules : how to avoid their application and improve the financial capacities of a company or group

The economic slowdown and the ongoing uncertainty in the capital markets have affected all companies not only in their capital structure, but also in their financing and investment decisions. The recourse to appropriate tax planning has become one of the alternative solutions and key elements for corporate management to soften the effect of volatility on the company's results. This article considers the thin capitalization rules currently applicable in France, and suggests possible ways to improve the financial capacity of a company or group.