Group tax integration: leading tax on a corporate scale

When a group brings together several beneficiary and deficit companies, reasoning entity by entity can lead to an incomplete reading of its taxation.

Tax integration makes it possible, under certain conditions, to understand corporate tax at group level and to bring the tax burden closer to its real economic performance.

Transforming several tax results into a group strategy

The interest of the scheme lies not only in the compensation of profits and deficits.

It may also change the way in which certain intra-group transactions are understood, the return on results, the use of deficits or the preparation of future acquisitions and reorganizations.

The real strategic task is therefore to determine whether tax integration creates a lasting advantage given the structure of the group, its forecast results and the operations envisaged.

Measure interest before opting

A growing group, a set of companies with very different profitability or an organization that is expected to evolve rapidly will not present the same issues.

The firm analyses the composition of the group, the distribution of results, the development prospects and the tax effects of the different scenarios in order to determine whether the integration regime really contributes to improving overall tax performance.

This approach also identifies situations where another organization may be more relevant.

Master Edouard Pruvost specializes in tax strategy advice for corporate groups. The firm analyses the value of fiscal integration from a global perspective of IS control, flow organization and group performance. To have your structure reviewed and advice on tax strategy, contact the firm.