Tax optimization: industrialist General Electric has been accused of transferring 800 million euros abroad

Tax optimization: industrialist General Electric has been accused of transferring 800 million euros abroad


The practices disclosed by Disclose concern the French gas turbine entity GE in Belfort, where in December 2021 it was sued by employees who accurately condemned its tax optimization scheme.


General Electric in Belfort, March 29, 2021. (Photo by SEBASTIEN BOZON / AFP) (AFP / SEBASTIEN BOZON)

According to information released on Sunday, May 29, the site of the investigation

Reveal

US industrial giant General Electric (GE) resorted to tax optimization in France between 2015 and 2020, which allowed it to

transfer up to 800 million profits abroad

.

These practices concern the French gas turbine entity GE in Belfort, where in December 2021 it was sued by employees who accurately condemned its tax optimization scheme. They lodged a complaint for “employee participation fraud”.

“GE respects tax rules”

The power plant’s turbine factory also paid royalties to its U.S. parent company for using its brand and technology.

Bercy would confirm the tax regime in advance

according to the protocol on the “relationship of trust” with the tax administration, he writes

Reveal

. Following this procedure, which was introduced in 2013 by the Ministry of Finance with a handful of companies, including GE, the company prepares its tax plan before the tax office, which undertakes not to initiate an audit.

“GE respects the tax rules of the countries in which the company operates,” a spokesman for the industrialist said on Sunday.

“All companies operating and producing in more than one country have a transfer pricing policy

to ensure that all transactions between companies are at normal prices (ie prices that would apply to transactions between unrelated parties), “he continued. Bercy, contacted by AFP, did not respond to requests.

CSE estimated the profits at about one billion euros

In its call submitted in December 2021, the Union of the Industry and the Social and Economic Committee (CSE)

GE accused the company of reducing the tax result

Belfort Gas Turbine Entities (GE EPF) through the transfer of assets to foreign subsidiaries where taxation is more favorable. They call for participation in the period 2015-2020.

CSE estimates the amount at about one billion euros

localized profits in tax havens

in recent years at the expense of GE EPF. EDF has since announced the purchase of part of the site’s activities for $ 1.2 billion.

.



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