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RCom rubbishes 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.

In a statement issued here, the Communications 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 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 the settled the tax disputes as per legal framework in available to all companies operating in

"During the period under consideration by the French Tax Authorities in 2008-2012 (nearly 10 years ago), Flag France 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 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. 15:08 IST