The telecommunications company Orange has appealed the decision of the Parquet National Financier (PNF), a French judicial institution with similar powers to the Spanish Economic and Fiscal Crime Unit (UDEF), for which 312 million euros have been withheld, according to The company reported in a statement.
According to the teleco, the measure is part of an ongoing litigation that is investigating the VAT rates applied to certain promotional offers marketed by Orange, mainly between 2017 and 2019.
“The Orange group strongly challenges the measures taken to recover payments of additional taxes and the alleged infractions that are attributed to it”, the company has stressed.
In this context, the company has indicated that on October 7, the PNF ordered the seizure of 312 million euros from Orange, an amount that the teleco will not be able to count on while the procedure lasts.
“These amounts will be recorded in a specific account on Orange’s balance sheet and will appear as such in their financial statements as of December 31, 2024. This embargo does not call into question the group’s financial forecast,” added Orange, which has also stressed that it has appealed this embargo.
“Neither Orange’s financial situation nor its reputation justify such a measure. Orange is one of the world’s leading telecommunications operators with a total consolidated balance sheet of €104.4 billion as of June 30, 2024 and a cash position of €17.4 billion in telecommunications activities. In addition, Orange is listed on the Euronext stock exchange in Paris and the French State owns 22.95% of its share capital,” he added.
Nevertheless, The company has stressed that it is cooperating with the PNG in the preliminary investigation phase of this matter.
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