FRANCE—French assimilation of foreign private foundations, trust or sui generis entity: current situation and outlook

Key Points

• The aim is to clarify whether foreign private foundations should be treated as trusts or as sui generis entities under French law.
• Analyzed the current approach of French tax authorities to foreign private foundations.
• Examined legal definitions and implications of treating these foundations as trusts versus sui generis entities.
• French tax authorities classify foreign private foundations as trusts with negative tax implications.
• A different interpretation suggests recognizing these entities as sui generis organisms.
• Resolution depends on an explicit court decision regarding the classification.