French Bank Suit Over Dividend Tax Rule Backed by Court Adviser

French banks’ efforts to challenge guidance by the country’s tax authorities on dividend arbitrage strategies got the support of an adviser to the top administrative court on Friday.

In a hearing at France’s Conseil d’Etat, the court adviser called for the cancellation of two advance tax rulings - written interpretations of the law - published this year by the country’s fiscal authorities. The rulings, which detail which dividend arbitrage strategies give rise to required tax withholding, was criticized by the French banking lobby Federation Bancaire Francaise for not providing clear direction, leading the body to file a lawsuit.