Profit Shifting and Comparability: The French Supreme Administrative Court Provides Useful Clarification on Functional Analysis and the Concept of Routine Entity

In two decisions of 4 October 2021 (SAS RKS and SAS Holding SKF France), the French Supreme Administrative Court (Conseil d’Etat) has confirmed the need to conduct a detailed and precise functional analysis that cannot be limited to the simplistic opposition between the concepts of principal entrepreneur and routine entity.