French Administrative Supreme Court specifies the conditions for the regularization of environmental authorizations

Laure Marolleau, Esq.

In a ruling issued on March 1, 2023, the Conseil d’Etat (French Administrative Supreme Court) clarified the conditions under which the administrative judge exercises his/her power to stay proceedings for the purpose of correcting the defects of an environmental authorization.

Duty of Vigilance: The claims brought by several associations against TotalEnergies dismissed!

Claire Filliatre, Esq.

In two judgments handed down on February 28, 2023, the summary judge of the Paris Judicial Court declared inadmissible the claims of several environmental protection associations seeking that TotalEnergies be ordered to comply with its duty of vigilance obligations under the Law No. 2017-399 of March 27, 2017.

No seizures without criminal prosecution

Victor Trouttet, Esq.

French criminal law is to be interpreted strictly. This principle, enshrined in Article 111-4 of the French Criminal Code, is a principle that permeates French criminal law. It follows that criminal law rules must be applied literally.

In a ruling issued on February 1, 2023, the Cour de Cassation (French Supreme Court) recalled this principle of strict interpretation of French criminal law in a case concerning the refusal of restitution of a seized property.

International Perspective

This month, we are pleased to feature a contribution entitled New developments in the drafting of the Unshell Directive (ATAD III): EU is setting minimum requirements for the tax advantages of shell companies, authored by Mikko Alakare and Anette Laitinen, respectively Partner and Associate at Finnish leading law firm Castrén & Snellman.

On 17 January 2023, the European Parliament approved a draft of the directive that is meant to prevent tax avoidance and tax evasion through companies that do not fulfil the minimum substance requirements set out in the directive (‘ATAD III’ or ‘Unshell Directive’). The draft directive is next referred to the Council, and it is to enter into force from the beginning of 2024.

The purpose of the Unshell Directive is to impose minimum substance requirements that companies located in the EU must fulfil in order to be entitled to the tax advantages granted through tax treaties and EU directives. The directive aims to prevent tax avoidance and tax evasion practices that directly affect the functioning of the EU’s internal market. The regulation is meant to prevent situations where companies that are located in the EU but have no or minimal economic activity (i.e., holding companies or shell companies) can benefit from tax advantages particularly by eroding the tax base of another Member State.