PARIS (Reuters) - A 1.9 billion euro ($2 billion) tax dispute between Orange (PA:ORAN) and French authorities will return to a lower court after the telecoms firm won an appeal at the country's highest administrative court, documents showed.
After Orange integrated a subsidiary in 2005 it booked heavy losses which it offset against profits in subsequent years. BFM TV's website, which published Monday's ruling, said the offsets meant Orange did not pay tax on earnings from 2000 to 2010.
However, the French tax authorities then said Orange must pay 1.9 billion euros in back taxes, which the company disputed in court. In a first ruling in 2013, Orange was ordered to pay the tax in full, which it did that year.
Orange appealed against the 2013 ruling at the Versailles appeals court but lost again in February 2016. The company then lodged another appeal with the Council of State, France's highest administrative court.
On Monday, the Council of State sent the case back to the Versailles court with a request for it to reconsider it, court documents published by BFM TV showed.
"We are happy with the Council of State's decision. The case continues," an Orange spokesman said.
The company could not say when the Versailles court would consider the case again nor when a new ruling was due.
($1 = 0.9337 euros)