Tax optimization: the government asks for more … – Le Figaro

Tax optimization: the government asks for more … – Le Figaro

In a letter Bercy calls to the boss of the public group with clear information about its subsidiaries established in countries at very advantageous tax.

On the eve of the G20, France must set an example. While the fight against tax optimization is one of the major topics discussed by finance ministers in Istanbul on Monday and Tuesday, the government wants to shed light on suspicions about EDF. The electricity giant, owned 84.5% by the state, is indeed believed to have opened branches abroad one purpose of tax optimization. “If there may be technical reasons for legal or business of a company has offices abroad, we can not accept that these settlements are mainly guided by tax reasons,” write the Ministers of Finance, Michel Sapin, and Economy, Emmanuel Macron in a letter to the boss of EDF, Jean-Bernard Lévy.

In the letter dated February 6, unveiled by AFP, they inform the CEO of the group had “instructed the State Representative administrators to transparency on settlements and investments (the company) abroad” at the next board. They also ask “inform the board (of directors) on changes to consider in this regard.” The two ministers also want the list of locations and affiliates “is made public”

The settlements covered by the government are those of the two insurance companies, subsidiaries of the group. Wagram Insurance Company located in Ireland Oceane Re and based in Luxembourg. EDF also holds a 3.8% interest in an insurance company in Bermuda. The existence of these activities was revealed by France 2 in December.

“It is not tax optimization but insurance activities related to our industrial activities”

At that time, EDF was forbidden to make tax planning in Ireland and Luxembourg. “These companies are insurance captives, ie they are reinsurance companies. They were created to cover a specific risk. We have a specific need for insurance that the group is not in France, “explained a spokesman for the Le Figaro . “There is nothing illegal,” added EDF. The group also pointed out that the activities of these two companies were very low with a turnover of 62 million euros in 2013 against 75.6 billion euros for the whole group.

In Bermuda, a country considered a tax haven by France, EDF support for his participation in “the largest mutual specializing in the energy sector” by claiming that “there is no equivalent and mutual corresponds to a very specific need. ” Explanations that the group reiterated today. “It is not tax optimization but insurance activities related to our manufacturing operations,” said a spokeswoman, told AFP

In December, Michel Sapin said he “would not tolerate any location that would be for tax planning reasons.” France, like many other countries, has engaged in a fierce fight against the practice used by many multinational companies such as Google, Apple or Amazon. Luxembourg has recently been pinned to its major role in the optimization process. Belgium is in turn suspected encourage multinationals by tax practices as advantageous are unjustified. In Istanbul, the finance ministers should again resume the offensive against tax optimization makes losing important revenue each year to the states.