F Telecom faces EU tax refund demand

2nd July 2004, Comments 0 comments

BRUSSELS, July 1 (AFP) - The European Commission could press France Telecom to repay up to EUR 1 billion (USD 1.20 billion) of improper tax advantages, a source close to the matter said here on Thursday.

BRUSSELS, July 1 (AFP) - The European Commission could press France Telecom to repay up to EUR 1 billion (USD 1.20 billion) of improper tax advantages, a source close to the matter said here on Thursday.

The commission's competition authorities have spent 17 months investigating whether the company had benefited from improper exemption from a tax that companies in France pay to the local authorities in the areas where they have installations.

The source said the commission had concluded that special arrangements amounted to an advantage for France Telecom.

But the source said the findings of the competition authorities, which have been sent to other departments of the commission, did not refer specifically to repayment of EUR 1 billion.

However experts working for Competition Commissioner Mario Monti, using estimates provided by France, had put the benefit accruing to France Telecom at EUR 1 billion.

The special arrangements applied from January 1994 to the end of 2002.

 

© AFP

 

Subject: French news

 

 

 

 

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