the PNF confirms the opening of an investigation aimed at the “tax status” of the firm in France

by time news

The investigation for aggravated money laundering of tax evasion targets the French entities of the firm, accused of tax optimization by the Senate.

After the tax authorities, it is the turn of the National Financial Prosecutor’s Office (PNF) to look into the accounts of the McKinsey firm in France. This Wednesday, April 6, the institution said in a press release that it had opened a preliminary investigation since March 31 for aggravated laundering of tax fraud. A decision taken following the publication by the Senate of a report on the growing use of private consulting firms by the State and their “influence on public policy”. The PNF investigation, opened after “checks“, was entrusted to the Service of judicial investigations of finances (SEJF), specifies Jean-François Bohnert.

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Contacted by us, the PNF confirmed that “this investigation is indeed and only aimed at McKinsey on the question of its tax status in France“. In addition, it is specified, the penalties incurred, if the facts are proven, are ten years in prison and a fine of 750,000 euros, “which can be increased up to half of the value of the goods or funds on which the money laundering operations were carried out».

For its part, the firm indicates to the Figaro that he “will be at the disposal of the competent administrations and authorities». «Whenever the firm has been the subject of requests for information from public authorities, it has obviously always responded and fully cooperated, including on technical tax issues. This has been the case during previous tax audits of the various McKinsey entities in France“, we add. In addition, McKinsey again assures respect “the French tax and social rules applicable to it», and repeats that his French tax approach is «similar in countries where it has been present and constant for years“. She is also known to the tax authorities. At last, “McKinsey is surprised by the focus on the firm, which accounts for only 1% of government consulting purchases, as mentioned in the Senate Committee report».

Suspicions of “tax optimization”

In its report, the Senate commission of inquiry accused the French entities of the McKinsey firm of tax optimization, such that they would not have paid any corporate tax between 2011 and 2020. “The McKinsey firm is subject to corporation tax (IS) in France but its payments have been zero euros for at least 10 years“, concluded the report, contradicting remarks “sworn under oathin front of the senators by an associate director of the firm in France.

Thus, according to the commission of inquiry led by President Arnaud Bazin (LR) and the rapporteur Senator Éliane Assassi (CRCE), the company would have escaped corporate tax despite a turnover “on the national territory“which has reached”329 million euros in 2020, of which around 5% in the public sector” and the fact that“it employs around 600 people” in France. The senators then described this practice as “caricatural example of tax optimization»thanks totransfert price» invoiced by the parent company, based in Delaware, to the French subsidiaries.

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Arnaud Bazin had on the other hand indicated to the Figaro last week that the legality of the optimization system scaffolded by McKinsey did not “no doubt“. The whole question in this case is whether the transfer prices have been correctly assessed or overstated in order to reduce the taxable base in France, and therefore the corporation tax. A work that the tax authorities have been looking at since the end of 2021: a tax audit was launched at that time on the company’s accounts, confirmed the Minister Delegate in charge of Public Accounts, Olivier Dussopt, last week. According to experts interviewed by us, the procedure could last several months and will include contradictory matters.

Initially, McKinsey France replied that it had paid “around 422 million euros in taxes and social chargesbetween 2011 and 2020, without specifying IS’s share of this sum. Then, in a second step, the firm had indicated that one of its French subsidiaries “of implementation has paid 6 years corporate taxover this period, without noting how many.

A highly political subject

«From the beginning, we have been calling for the full truth to be told about the tax practices of this firm“Reacted the government spokesperson, questioned at the end of the Council of Ministers. The PNF’s investigation is in line with that of the DGFIP on the company’s accounts, said Gabriel Attal. “This consulting firm will pay what it has to pay“, he added, recalling the commitment of the executive for a minimum taxation of multinationals, on a global scale.

Several candidates reacted quickly to the announcement of the PNF. “Tax evasion, finally on the menu of this campaign!“, rejoiced the communist Fabien Roussel. “At last !“, greeted Eric Zemmour, when Nicolas Dupont-Aignan called to go further, by launching an investigation into “the possible conflicts of interest between E. Macron and the consulting firms? And on his heritage?».

The use of consulting firms by the State as well as the suspicions of tax optimization which weigh on McKinsey have been at the heart of a controversy in recent weeks. There are also accusations of favoritism: the oppositions point out that former members of the consulting firm were able to participate, on a voluntary basis, in the presidential campaign of Emmanuel Macron, in 2017, before joining the ranks of Macronie . From “cronyism“, lash representatives of right and left. Three parliamentarians who are members of the Reconquête! of Eric Zemmour – Stéphane Ravier, Guillaume Peltier and Sébastien Meurant – had also announced this Tuesday, April 5 their desire to seize the PNF in this regard.

The government has vigorously refuted the various accusations, recalling for example that the use of consulting firms was not new and that the sums at stake are much larger abroad. “If there is evidence of manipulation, let it go to the criminal“retorted Sunday March 27 Emmanuel Macron to those who reproach him for these numerous contracts.


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