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Anil Ambani firm got 143.7 mn euro tax waiver after Rafale deal announcement: Le Monde

Press Trust of India  |  New Delhi 

waived taxes worth 143.7 million euros to a French-registered of Anil Ambani's in 2015, months after India's announcement of buying 36 jets, a leading French newspaper reported Saturday.

In its reaction, rejected any wrongdoing and said the tax dispute was settled under legal framework which is available for all companies operating in

The French newspaper said the French tax authorities accepted 7.3 million euros from Reliance Flag Atlantic as a settlement as against original demand of 151 million euros. Reliance Flag owns a and other in France.

had announced the procurement of a batch of 36 jets after talks with the then French on April 10, 2015 in The final deal was sealed on September 23, 2016.

The has been alleging massive irregularities in the deal, saying the government was procuring each at a cost of over Rs 1,670 crore as against Rs 526 crore finalised by the when it was negotiating the deal.

The has also been targeting the government over selection of Anil Ambani-owned as an offset for Dassault Aviation, the manufacturer of The government has rejected the allegations.

The French newspaper said the company was investigated by French tax authorities and found liable to pay 60 million euros in taxes for the period 2007 to 2010.

However, Reliance offered to pay 7.6 million euros only as a settlement but it was French tax authorities refused to accept the amount. The authorities conducted another probe for the period 2010 to 2012 and asked the company to pay an additional 91 million euros in taxes, the report said.

It said by April 2015, the total amount owed by Reliance to the French authorities in taxes was at least 151 million euros.

In October, six months after Modi announced in about the Rafale deal, the French authorities accepted 7.3 million euros from Reliance as a settlement as against the original demand of 151 million euros.

A of said the tax demands were "completely unsustainable and illegal" and that the company denied any favouritism or gain from the settlement.

"During the period under consideration by the French Tax Authorities - 2008-2012 i.e. nearly 10 years ago, Flag France had an operating loss of Rs 20 crore (Euro 2.7 million). French tax authorities had raised a tax demand of over Rs 1100 crore for the same period," the said.

"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," he said.

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

First Published: Sat, April 13 2019. 15:50 IST
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