France : No political interference in tax settlement with Anil Ambani's Reliance

New Delhi After reports that the French government had favoured Anil Ambanis company with special tax benefits the French Embassy on Saturday said a global settlement was reached between the tax authorities and Reliance Atlantic Flag France and it was not subject to any political interferenceIn a statement the Embassy said the settlement was conducted in full adherence with the legislative and regulatory framework governing this common practice of the tax administrationA global settlement was reached between the French tax authorities and Reliance Flag a telecom company in a tax dispute pertaining to the period 20082012 This settlement was conducted in full adherence with the legislative and regulatory framework governing this common practice of the tax administration It was not subject to any political interference whatsoever the embassy saidThe statement comes in the wake of Congress today stepping up its attack on the BJPled government and accused the French government of favouring Anil Ambanis company for getting special benefit in the form of tax settlement days after the deal for the Rafale fighter jets was signedEarlier in the day French newspaper Le Monde in a report said that Anil Ambanis Reliance received special benefit from the French government in the form of the tax settlement days after the deal for the Rafale fighter jets was signed between February and October 2015 while France was negotiating the Rafale contract with IndiaThe newspaper further stated that the French tax authorities accepted 73 million euros from Reliance Flag Atlantic France as a settlement as against original demand of 151 million euros Ministry of Defence and Reliance group were quick to issue rebuttals on the allegationsThe Defence Ministry said the connections drawn between the tax issue and the Rafale matter is inaccurate tendentious and a mischievous attempt to disinformThe Defence Ministry said We have seen reports drawing a conjectural connection between tax exemption to a private company and procurement of Rafale fighter jets by Government of IndiaNeither the period of the tax concession nor the subject matter of the concession relates even remotely to the Rafale procurement concluded during the tenure of the present government Any connections drawn between the tax issue and the Rafale matter is totally inaccurate tendentious and is a mischievous attempt to disinformReliance Communications released a statement denying any favouritism or gain from French authorities The tax demands were completely unsustainable and illegal the statement said and it claimed that tax disputes were settled as per legal framework in France available to all companies operating in FranceReliance Communications said that between 2008 and 2012 Flag France had an operating loss of Rs 20 crore EUR27 million while the French tax authorities had raised a tax demand of over Rs 1100 crore for the same period A mutual settlement agreement was signed to pay Rs 56 crore as a final settlement it saidCatch up on all the latest Crime National International and Hatke news here Also download the new midday Android and iOS apps to get latest updates