CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. France's Cahuzac Admits To Untaxed Offshore Account

France's Cahuzac Admits To Untaxed Offshore Account

by Ulrika Lomas,, Brussels

05 April 2013

Dealing a severe blow to the Socialist Government as it seeks to redress the public finances by clamping down on tax evasion and by demanding a greater contribution from the country's wealthiest, former Budget Minister Jérôme Cahuzac has finally admitted to having an undeclared offshore bank account, having resigned two weeks ago.

Until now, Cahuzac has steadfastly denied claims made by information website Mediapart that he held an undisclosed and un-taxed account in the Swiss banking giant UBS. Since French President François Hollande's inauguration, Cahuzac has, rather ironically, spearheaded Government efforts to combat tax fraud both at national and international level. Caught up in a "spiral of lies," Cahuzac eventually conceded that he has assets to the tune of around EUR600,000 (USD770,909) deposited in a foreign account.

Following the admission, French President Hollande highlighted the fact that Cahuzac had deceived the highest authorities in France: the Head of State, the Government, parliament and therefore all French citizens. Alluding to "an unpardonable mistake" and to "a grave moral error," Hollande stressed that it is simply "intolerable" to have an undeclared account abroad.

Hollande explained that the judiciary will now continue its work in complete independence. The President also announced details of a series of measures to be introduced, drawn up in the light of recent events. The Government plans to strengthen the future independence of the French justice system, to combat conflicts of private and public interest, and to ensure full publication and verification of all ministerial and parliamentarian assets. Any officials convicted of tax evasion will be banned from public office, Hollande warned.

Mediapart's allegations were based on a recorded conversation in which Cahuzac is alleged to have directly alluded to the hidden account. Mediapart claims that the Budget Minister finally closed the account in 2010, transferring the undeclared assets to Singapore. Cahuzac vehemently denied the claims from the outset.

According to his lawyer, Cahuzac has now been placed under formal investigation for laundering the proceeds of tax fraud.

TAGS: compliance | tax | investment | tax compliance | tax avoidance | interest | law | banking | Singapore | offshore | offshore banking | France | individual income tax

To see today's news, click here.

Leave a comment

Read our Posting Guidelines



Password Reminder

Please enter your email address to receive a password reminder.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Tax-News+ Updates

Receive FREE daily updates from, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...


Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »