French Prosecutors Opens Tax-fraud Investigation

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French Prosecutors Opens Tax-fraud Investigation
07 Apr 2022
6 min read

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News Synopsis

French prosecutors have begun investigating tax evasion and money laundering due to Senate reports of government spending on consulting firms that hit President Emmanuel Macron a few days before the election.

The financial prosecutors of France have issued a statement saying that they were probing the findings of a Senate report that was published last month. The report included how the government spent 893.9 million euros on consultants last year. 

The investigation was focused on possible tax fraud and money laundering without naming any suspects. The Senate report claimed that McKinsey based in New York has not paid corporate tax in France for at least a decade, even after having €329 million in revenue in the country in 2020 and employing 600 people.

The French unit of the company has previously said that it complies with all applicable French tax and social security regulations. It also claimed that it paid more than €422 million in French taxes and social security contributions from 2011 to 2020, representing almost 20% of its cumulative revenue over the same period.

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