#Criminal tax law:
Netflix Suspected of Tax Fraud: Ongoing Searches in Paris and Amsterdam
As part of a preliminary investigation opened in November 2022 on suspicion of aggravated tax fraud laundering and concealed work in an organised gang, several search operations were carried out simultaneously on 5 November 2024 at the premises of Netflix France in Paris and at the company’s European headquarters in Amsterdam. This coordinated action, led by the National Financial Prosecutor’s Office (PNF) and the “Office central de lutte contre la corruption et les infractions financières et fiscales” (OCLCIFF), is part of an in-depth investigation into Netflix’s tax policy in France, which is already the subject of a tax audit covering the 2019, 2020 and 2021 financial years. The investigation, carried out in cooperation with the Dutch judicial authorities and under the coordination of Eurojust, seeks to determine whether Netflix has used tax optimization practices enabling it to minimize its taxable profits in France by deferring a substantial part of its sales to the Netherlands until 2021. Despite the abandonment of this financial arrangement, the differences in the company’s French and American margins continued in 2022. > Read article
#Anti-Bribery and Corruption:
The COP29 threatened by the promotion of fossil fuels and corruption, according to a report
On 31 October, the NGO Transparency International and the Anti-Corruption Data Collective published a report outlining the risks to the integrity and independence of the forthcoming COP29, to be held in Azerbaijan from 11 to 22 November. The event could be “undermined by inappropriate influences” from the fossil fuel sector, threatening the progress of the climate negotiations. The choice of Azerbaijan to host the event raises doubts about the integrity of UN climate conferences and the risks of the COP being captured by private interests, notably because of its “autocratic government”, its role as a hydrocarbon exporter and its high level of public sector corruption. The report is particularly critical regarding the links between the COP29 presidency, held by Moukhtar Babaïev, and the national hydrocarbons company, Socar, denouncing the possible instrumentalization of the conference to promote fossil fuel contracts. > Read article
Football: searches at LFP headquarters and CVC fund offices
The National Financial Prosecutor’s Office has opened an investigation into the embezzlement of public funds, active and passive corruption, and illegal taking of an interest, following a complaint by the “AC!” association against the French Professional Football League (LFP) and its chairman, Vincent Labrune. The investigation led to searches of the LFP’s headquarters, Vincent Labrune’s home and the offices of the CVC fund. Investigators aim to clarify the terms of the agreement signed in 2022 between the LFP and CVC fund, in which the latter invested €1.5 billion in exchange for a 13% stake in the league’s commercial company. Suspicions have been raised about the potential personal interests of the directors and the distribution of €37.5 million in fees, including substantial bonuses for Vincent Labrune and the LFP’s chief executive. > Read article
#White collar crime:
Bismuth case: Nicolas Sarkozy’s cassation appeal examined this Wednesday
On 6 November 2024, the French Supreme Court, the Cour de cassation examined Nicolas Sarkozy’s appeal against the decision of the Court of Appeal which sentenced him to three years in prison, including one year under electronic monitoring, in the “Bismuth case”. The ruling, handed down in May 2023, found the former president guilty of corruption and influence peddling. The defense contests the legality of the wiretaps between Nicolas Sarkozy and his lawyer Thierry Herzog, arguing that the recordings violate attorney-client privilege. If the Cour de cassation find that the procedure is valid, Nicolas Sarkozy could be forced to wear an electronic bracelet. However, if the Cour de cassation were to endorse the defense’s arguments, the case would be re-referred to the Court of Appeal for a new ruling. The final decision of the Cour de cassation is expected in the coming weeks. > Read article
