France · International tax development
France: AG supports excluding foreign subsidiaries’ final losses
On 22 October 2026, Advocate General Kokott proposed that the Court uphold France’s refusal to import final losses of foreign subsidiaries in Joined Cases C‑287/25 to C‑289/25, OPmobility and Others.
- Official document:
- OPmobility and Others, Joined Cases C-287/25 to C-289/25, EU:C:2026:899
- Development date:
- 2026-10-22
The dispute concerns French parent companies seeking to deduct losses of liquidated subsidiaries in Belgium, Latvia and Slovakia. The Opinion examines Articles 49 and 54 TFEU, alongside Articles 209, 223 A and 223 I of the French General Tax Code. It does not amend those provisions.[1]
Article 209(I) sets the territorial basis for corporate taxation. Article 223 A permits an integrated group subject to ownership and other conditions; its paragraph III requires members’ results to be subject to French corporation tax. These rules provide the national context, not a new relief.[2][3]
In her non-binding Opinion, Kokott considers domestic and foreign subsidiaries not objectively comparable where France does not tax the foreign subsidiary’s profits. Alternatively, she considers the refusal justified by the allocation of taxing powers and tax-system coherence. Her reasoning therefore questions cross-border use of final subsidiary losses; it is not a Court ruling that changes their treatment.[1]
For French-headed groups considering a foreign subsidiary’s liquidation, the case concerns the ability to use losses in the parent jurisdiction. The Court’s eventual judgment remains to be seen. The Opinion alone should not be treated as changing a deduction position or creating a filing deadline.[1]
Official sources
- [1] Opinion of Advocate General Kokott — OPmobility and Others
Court of Justice of the European Union · Document date: 2026-10-22
Header; complete substantive paragraphs1–91, particularly8–10(national law),11–18(facts),39–57 and63–91(reasoning/conclusion). Footnotes4–6 treaty locators inspected; not every cited underlying case independently reread.
- [2] Code général des impôts — Article209
Légifrance · Document date: 2023-12-29
Current31October2026 display; version in force31December2023; Article209(I) opening/territoriality and loss carryforward paragraphs162–172; not entire Article209 or all linked current provisions.
- [3] Code général des impôts — Article223A
Légifrance · Document date: 2023-12-29
Current31October2026 display; version in force31December2023; Article223A(I) first two paragraphs and(III) membership/results condition, lines121–128 and151–164; no full national integration audit.