On the 27 November 2012, the French tax authorities released guidelines (BOI-SJ-letter-20121127 and linked documents) in which they clarified the regime of the transfer of losses in the case of restructuring (e.g. a merger).
Under the domestic law, losses realized by an acquired company may not be carried forward by the absorbing company. However, under article 209-II of the French Tax Code, in case of restructuring under the favourable regime of article 210 A of the French Tax Code, los…