India on Saturday stated a French media report linking a tax exemption given to a French subsidiary of Reliance Group and an $8.7 billion fighter jet deal between the 2 nations was “completely inaccurate.”
French newspaper Le Monde reported on Saturday that France waived a tax demand of 143.7 million euros on a French subsidiary of Reliance Communications in 2015 when it was negotiating to promote the jets to India. The longstanding tax dispute was resolved between February and October that 12 months, Le Monde stated.
India’s Ministry of Defence stated on Saturday the report was drawing a conjectural connection between the tax aid and the jet deal.
“Neither the interval of the tax concession nor the subject material of the concession relate even remotely to the Rafale procurement concluded in the course of the tenure of the current authorities,” the ministry stated in a press release.
“Any connections drawn between the tax subject and the Rafale matter is completely inaccurate, tendentious and is a mischievous try to disinform.”
India’s foremost opposition Congress Occasion has for months accused Prime Minister Narendra Modi of corruption in selecting Reliance Defence as a home accomplice within the deal to purchase 36 Rafale planes from France’s Dassault Aviation.
The allegations have repeatedly been denied by each Modi and Mumbai-based Reliance, managed by industrialist Anil Ambani.
Reliance stated in a press release on Saturday that Reliance FLAG Atlantic France, which runs a cable community and telecom infrastructure enterprise, mutually agreed with the French authorities to pay 560 million rupees ($Eight million) as tax for the interval between 2008 and 2012 as an alternative of the preliminary demand of 11 billion rupees.
It stated that in that interval Reliance FLAG enterprise had a an working lack of 2.7 million euros ($three million).
“Reliance denies any favouritism or achieve from the settlement,” it stated within the assertion. “Reliance Flag settled tax disputes as per authorized framework in France out there to all corporations working in France.”
There was no quick remark from the French Finance Ministry.
India’s Supreme Court docket stated this week it will hear a request for an investigation into the jet deal.
Underneath India’s defence procurement guidelines, any firm promoting gear should make investments not less than 30 p.c of the contract in India as a part of an “offset” clause to assist construct a home manufacturing base and scale back the nation’s dependence on imports. Dassault has stated it picked Reliance Defence as a accomplice by itself.
Additionally learn: France denies political interference in tax aid to Anil Ambani