Inaccurate, tendentious and mischievous attempt to disinform: Defence ministry quashes French report linking Ambani tax cut and Rafale deal

The Ministry of Defence on Saturday quashed a report by French media that said that an Anil Ambani-owned company received massive tax cuts in France after Rafale deal. The ministry, in a statement, termed France's Le Monde's report as inaccurate and an attempt to disinform.

"We've seen reports drawing a conjectural connection between tax exemption to a private company and the procurement of Rafale jets by the Government of India. Neither the period of tax concession nor the subject matter of concession relate to Rafale procurement, concluded in present government's tenure," the statement read as reported by news agency Reuters.

"Any connections drawn between the tax issue and the Rafale matter is totally inaccurate, tendentious and is a mischievous attempt to disinform," the statement read further.

Add WION as a Preferred Source

The French government also released an official statement on the issue stating, "A global settlement was reached between the French tax authorities and Reliance Flag, a telecom company, in a tax dispute pertaining to the period 2008-2012. 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."

Le Monde’s report stated that French authorities waived off taxes worth 143 million euros, roughly 1, 200 crores, for Anil Ambani's France-based company.

The report said that this happened just a few months after PM Modi announced his plans to buy 36 Rafale fighter jets from French company Dassault.

The company in question here is Reliance Flag Atlantic France, a telecommunications company owned by Indian businessman Anil Ambani.

The report noted that Ambani's company was facing two tax investigations - one for the period between 2007 to 2010 when the firm was found liable to pay 60 million euros and the second from 2010 to 2012 after which the company was asked to pay an additional 91 million euros in taxes.

However, the report said that all of this dissolved six months after the Prime Minister made the Rafale in 2015.

The report also said that after the announcement, French tax authorities reportedly waived off Anil Ambani's tax debt worth 143.7 million euros and accepted 7.3 million euros from Reliance as a settlement.

Meanwhile, as per reports, Anil Ambani-led Reliance Communications on Saturday rubbished the French media report. In a statement, RCom clarified that the tax issue of its subsidiary Reliance FLAG Atlantic France SAS pertained to the year 2008 which was much before the government decided to purchase Rafale jets from French company Dassault.

The statement also added that the issue had been settled as per the local laws.