The Center for Prospective Studies and International Information, responsible for this study, calls for “Modernize the tax system for international groups”.
The shortfall for the state is enormous. The tax optimization strategies used by multinational companies cause the French tax authorities to lose nearly 14 billion euros each year, according to a study by the Center for Prospective Studies and International Information (Cepii) published on Friday, June 7. To get an idea, the sum is higher than the budget of the Ministry of Culture (around 10 billion euros).
The study of CEPI calls for “Modernize the tax system for international groups”. “Tax avoidance is by nature a hidden activity, of which it is difficult to have direct evidence”, underlines in its study this research organization attached to Matignon. “However, if the phenomenon is quite massive, it is necessarily reflected in the economic indicators measuring the activity of companies”, add the CEPI. He recalls that “the examples of multinationals using complex tax systems to shield their profits from tax are legion ”.
No “hidden treasure”
According to Cepii, it is not a question of seeing in these 14 billion “A hidden treasure”, “Any tax reform aimed at taxing these profits is likely to modify more widely the investment decisions and location of multinationals”. But this constitutes “A strong reason to modernize the tax system for international groups”, insists the research organization.
The CEPI calls for a more effective fight against tax avoidance by multinationals “European level”. Nine of the top ten countries for recording missing profits in France are in fact located in Europe.