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RCom, Defence Ministry rubbish French media report on tax issue

IANS  |  New Delhi 

The Communications on Saturday rubbished a media report which claimed that taxes to the tune of 143.7 million euro were waived by the French authorities for a France-based company of "just a few months" after Modi announced the decision to buy 36 fighters in 2015.

The also dismissed the report saying the connection drawn between the tax issue and the deal was "inaccurate" and a "mischievous attempt to disinform".

"We have seen reports drawing conjectural connection between tax exemption to a private company and procurement of fighter jets by Neither the period of tax concession nor the subject matter of the concession relate even remotely to the Rafale procurement concluded during the tenure of the present government," the said in a statement.

"Any connections drawn between the tax issue and the Rafale matter is totally inaccurate, tendentious and is a mischievous attempt to disinform," it added.

Earlier in a statement, the Communications had clarified that the tax issue of its subsidiary FLAG Atlantic SAS pertained to the year 2008 and had been settled as per the local laws, much before the decided to purchase Rafale jets from French company

"tax issue pertains to 2008, nearly 10 years old," the company said.

"says the tax demands were completely unsustainable and illegal. Reliance denies any favouritism or gain from settlement," it added.

The statement added that settled the tax disputes as per legal framework in available to all companies operating in that country.

"During the period under consideration by the French Tax Authorities in 2008-2012 (nearly 10 years ago), FLAG had an operating loss of Rs 20 crore (2.7 million euro).

"French tax authorities had raised a tax demand of over Rs 1,100 crore for the same period. As per the French tax settlement process as per law, a mutual settlement agreement was signed to pay Rs 56 crore as a final settlement," the company said.

The deal for procurement of 36 Rafale fighter jets from was announced in April 2015 during Modi's visit to

FLAG France owns a and other in France.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, April 13 2019. 20:18 IST