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Dassault Responds To Paradise Paper Leaks

by Ulrika Lomas,, Brussels

13 November 2017

French aircraft manufacturer Dassault Aviation has issued a statement on its tax arrangements in response to media coverage of the so-called "Paradise Papers."

The company was named in the documents a "hacker" illegally obtained from offshore law firm Appleby, which led to the disclosure of confidential files concerning the tax arrangements of Appleby clients.

Dassault Aviation, which has been accused in media as enabling its clients to circumvent French VAT on plane purchases by importing the aircraft into the EU through the Isle of Man, said it "complies with all of its tax obligations and in this respect pays taxes and duties in the countries where it conducts its industrial activities, i.e. chiefly in France and in the United States, via its American subsidiary. No tax optimization structure has been set up by the company in order to evade French taxes or French VAT."

It said: "Between 2008 and 2012 only, Dassault Aviation incorporated seven leasing companies in the Isle of Man, to cover the financing needs of customers amid the financial crisis. This represented two percent of Falcons delivered worldwide over the period 2008 to 2012. The Isle of Man was chosen for reasons related to operational flexibility and corporate management. The Isle of Man is with respect to VAT a European Community territory and is not listed among the non-cooperative tax jurisdictions."

"Whether for direct sales or financing of its Falcon business jets, Dassault Aviation conducts out the necessary checks and formalities in compliance with the laws and regulations in force, with all such operations being regularly checked by the French tax authorities. Dassault Aviation keeps a scrutiny on its operations leading to the delivery of aircraft to its clients. The choice of country of registration and the mode of operations of aircraft delivered are the exclusive prerogative of clients."

TAGS: Isle of Man | compliance | tax | business | value added tax (VAT) | law | offshore | France | United States | regulation | Europe

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