Burden of Proof in Transfer Pricing: Functional Analysis and Comparables Still Make the Case

In this article, the author examines a recent French Supreme Administrative Court decision in the Engie transfer pricing case (Conseil d’Etat, 8e et 3e chambres réunies, 7 May 2026, n° 496874, Min. c/ SA Engie), which reaffirms that the French tax authorities bear the burden of proof in the event of a transfer pricing reassessment. The decision highlights the importance of a robust functional analysis and reliable comparables while confirming that merely criticizing a taxpayer’s chosen transfer pricing method is not sufficient to justify a reassessment.