'Paradise Papers': clarification by Dassault Aviation

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Dassault Aviation, mentioned in the latest round of leaks concerning alleged tax evasion schemes - dubbed the 'Paradise Papers' - said it had set up entities on the Isle of Man but added it respected its tax obligations.

In a statement issued on Tuesday (7th November) Dassault provided the following clarification:

'Dassault Aviation 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.

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.

Between 2008 and 2012 only, Dassault Aviation incorporated 7 leasing companies in the Isle of Man, to cover the financing needs of customers amid the financial crisis. This represented 2% 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.

The need to move towards international rules for tax harmonization is a political topic which we support in order to ensure fair global trade.'

BlueSky Business Aviation News | 9th November 2017 | Issue #438

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