PE case lawFrench Court rules against deducting foreign PE lossesOn 26 April 2024, the French Supreme Administrative Court (Conseil d'Etat) issued decision No. 466062, addressing whether European Union (EU) law allows resident companies to deduct final losses of a Permanent Establishment (PE) located in another EU Member State from their taxable profits in France.In this case, a French company set up a PE in Luxembourg for a construction project. Following the closure of the PE, the company sought to offset the losses incurred by the PE against the profits of its French tax-consolidated group. Disagreeing with this approach, the French...