Transfer pricing remains a top concern for directors of companies based in France. A survey by Taj reveals that regulatory complexity especially in TP issues is critical. Approximately 90% of respondents consider that their relationships with tax authorities are satisfactory. 81% feel that tax audit procedures are conducted in satisfactory conditions. However, 80% of respondents consider that their level of satisfaction depends on the tax units involved.

While being satisfied with the quality and professional of tax authority officials, they doubt the speed (45%) and consistency of responses given by tax authorities. 70% of them have been faced with differences of opinion between tax units.

The tax base determination is highly complex, and interpretations are made too haphazardly. The areas of most concern to the CEOs in the survey are VAT, transfer pricing and business tax.

Taj says that the main reason for this uncertainty is the instability of tax rules. Constant change in legislation is cited as a reason by nearly three quarters of the survey group. Also, uncertainty stems from differences of opinion: 45% of respondents received from a tax inspector a response that was contradicted by another tax inspector.