"This practice has existed for twenty years" with the "complicity of the State", says the president of a consulting firm

Posted on 31/03/2023 07:59

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According to Éric Delannoy, the State described the practice in a report as “a way of being able to accelerate the attractiveness of the financial center of Paris for foreign investors”.

“This practice [du CumCum, qui consiste à confier temporairement des actions à une banque pour échapper à l’impôt sur les dividendes] has existed for twenty years” with “a complicity of the State, including the tax authorities, which turned a blind eye to these practices”, says Éric Delannoy, founding president of the consulting firm Tenzing, Friday March 31 on franceinfo.

>> Suspicions of tax evasion: the French banking federation requests the Council of State

On Tuesday, five Parisian banks were raided in what was presented as “the largest operation in the history of the National Financial Prosecutor’s Office”as part of an investigation for “aggravated tax fraud” and “tax fraud laundering”. “We are on the gray border between tax optimization and tax evasion”admits Eric Delannoy.

However, so far there was no “no ban” from the authorities regarding this practice of “CumCum”, according to this specialist in operational strategy consulting who even affirms that the State implicitly encouraged “CumCum”, describing the practice in a report as “a way of being able to accelerate the attractiveness of the financial center of Paris for foreign investors.”