British firm staff on trial for French tax evasion

27th February 2007, Comments 0 comments

PARIS, Feb 26, 2007 (AFP) - Around 100 French lawyers employed by top British law firms including Linklaters and Clifford Chance are to stand trial next month accused of evading social security payments in France, officials said Monday.

PARIS, Feb 26, 2007 (AFP) - Around 100 French lawyers employed by top British law firms including Linklaters and Clifford Chance are to stand trial next month accused of evading social security payments in France, officials said Monday.

A March 7 hearing before the European Court of Justice in Luxembourg is to decide whether the lawyers are in breach of employment law, in a ruling set to form a legal precedent, the URSSAF social security collection agency said.

According to the French newspaper Liberation, several British law firms including Clifford Chance, Ashurst and Linklaters, urge their French partners to declare the great majority of their earnings in Britain.

The system reportedly allows them to drastically cut their French social security and income tax bill.

The Paris URSSAF argues that the practice costs it some two million euros (2.6 million dollars) per year in lost revenue.

Copyright AFP

Subject: French news

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