Canal+ and the tax authorities in dispute for an amount of 655 million euros due to a VAT issue

TAXES – A hefty bill a few days before his birthday. Canal+, which is celebrating its 40th anniversary this Monday, November 4, risks having to pay more than half a billion euros in taxes. “The French tax authorities are demanding substantial amounts from the group for the VAT allegedly due, which the group disputes”we can read in a document posted online on the Canal+ website.

This dispute, which concerns the VAT rates applied by the audiovisual group, actually amounts to 655 million euros, the media wrote on Thursday October 31 The Informed et The Echoes. A source close to the matter explains to AFP that the tax authorities “don’t complain”to date, “655 million euros”but offers “rectifications for 655 million euros”rectifications that the Canal+ group “disputes”.

Of the « discussions » are ” in progress “ between the tax authorities and the Canal+ group. “It is not excluded that an amount very far from the sum of 655 million will be claimed by the end of the year”further exposes this source.

This is a long-term matter. Canal+ confirmed to AFP in mid-June 2022 “having been informed by the tax authorities on April 21, 2022 (…) that the VAT rate applicable to certain of its offers would now be 20% and no longer 10%”. The group said at the time to analyze “the scope and consequences of this letter, and in particular the possible avenues of appeal”.

Canal+ soon listed on the London Stock Exchange

At the end of June 2022, heard by the audiovisual regulator (Arcom), Maxime Saada, president of the group, deplored that the tax administration “explains that potentially (the VAT rate) could increase to 20%”. Such taxation could have “Colossal impacts on Canal”continued the manager at the time.

Canal+ published this week documents with an accounting or financial dimension on its site because the group is one of three companies, with Havas and Louis Hachette Group, which aim to become independent of Vivendi, according to a project announced last year and which will be voted on on December 9 at the general meeting. If the split plan is approved, the first listing of Canal+ shares would take place on December 16 on the London Stock Exchange.

Whether voluntary or not, the documents relating to this possible listing are published on the Canal+ website with a photo taken from the series. Of money and bloodwith Vincent Lindon, fresco retracing the incredible history of VAT fraud on carbon quotas.

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