The Supreme Court on 8 March 2023 issued its ruling [in French] in the Natixis case dealing with the carry-forward of unabsorbed foreign tax credits (FTCs) in loss years. FTCs may be set off against the French corporate tax liability only if provided for under an applicable tax treaty. The Supreme Court had already excluded the possibility to claim from France a refund of excess unabsorbed FTCs. Also, in non-treaty situations, French domestic law allows for the deduction of foreign taxes as a cost. However, the Supreme Court denied the cost deduction approach where a tax treaty applies and provides...