A search would take place this Tuesday at Altice, parent company of SFR, for a tax dispute.
According to information from Le Figaro, a search took place this Tuesday, November 7, 2023 in the premises of Altice, the parent company of SFR. Investigators from the National Financial Prosecutor’s Office (PNF) are reportedly looking for elements concerning “counts of aggravated tax fraud and laundering of these facts“.
An expected search
Those who imagine an American-style descent with great fanfare are far from the mark. According to Arthur Dreyffuss, CEO of Altice France, this search was expected and “takes place peacefully in a spirit of cooperation“. He would also have confirmed to Le Figaro that it “is linked to a dispute with the tax administration over the VAT rates applied to our TV offers between 2013 and 2019“.
The investigation was opened on January 19, 2022 and “concerns suspicions of a reduction in VAT on two products marketed by these companies: triple-play offers and press services“. 200 million euros would have been avoided by SFR between 2015 and 2016 alone.
A recurring affair
It’s now a habit. In spring 2022, the group had already received a tax adjustment of 420 million euros. In 2020, 245 million euros were claimed from Altice by Bercy for the same reasons. In total, 830 million have already been recovered by the PNF.
The reason in question is the option “SFR press», imposed on SFR subscribers. This was billed at 19.99 euros, with an equivalent discount, allowing it not to be added to customers’ bills. However, SFR declared 20 euros of each invoice subject to the reduced VAT provided for the press (i.e. 2.1%) instead of the 20% normally required.
This practice lasted several years before being stopped dead by Bercy in 2018. Since then, the prosecution has continued its work to seize its dues. This new episode could well result in more than a billion euros in recovery for SFR.