Insurance group AXA S.A. is now paying back millions of euros in taxes after French tax authorities found that a Luxembourg-based structure had been used by the group for tax avoidance. According to the French tax authorities AXE S.A. had undeclared taxable profits of at least 130 million in FY 2005 and 2010.
The scheme involved use of a group entity in Luxembourg granting loans to AXA’s foreign subsidiaries. The entity in Luxembourg benefited from a tax ruling issued by Luxembourg’s authorities that allowed it to be tax-exempt.
According to AXA the tax laws of France and Luxembourg were fully respected and the group is confident regarding the outcome of this process and will keep collaborating with fiscal authorities to assert its rights.