The French Supreme Court (Conseil d'Etat) issued a decision on 7 April 2023 concerning foreign tax credit claims in relation to dividends received under the 95% participation exemption in cases where the actual costs are less than the taxable 5% add-back that represents non-deductible costs related to a participation (1% for the 99% participation exemption). In a 5 July 2022 decision (previous coverage), the Supreme Court found that the required add-back results in an amount submitted to tax (partial taxation) when the actual cost is less than the flat-rate amount (5%/1%). Considering this position, such partial taxation could result in...