Rafale deal: Govt dismisses tax waiver report as ‘mischievous’

NEW DELHI: The Defence Ministry on Saturday clarified that any connections drawn between the tax issue and the Rafale matter is “totally inaccurate, tendentious and a mischievous attempt to disinform”.

The Ministry was responding to a French daily’s report that the France Government waived taxes worth 143.7 million euros owed by a local subsidiary of Anil Ambani’s Reliance Global Comm Limited in 2015, around the same time when India was negotiating the Rafale aircraft deal.

Reliance Atlantic Flag France was investigated by French tax authorities and found liable to pay 60 million euros in taxes for the period 2007 to 2010. After another investigation for the period 2010 to 2012, they were  asked for an additional tax demand of 91 million euros in taxes.

In a statement, the Defence ministry said, “We have seen reports drawing conjectural connection between tax exemption to a private company and procurement of Rafale fighter jets by the Government of India. Neither the period of the tax concession, nor the subject matter of the concession relate even remotely to the Rafale procurement concluded during the tenure of the present Government.” (AGENCIES)



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