French oil major Total tonight denied claims it used subsidiaries in Bermuda for tax dodge purposes.
As the fallout continued from the so-called Paradise Papers, listing people and businesses who have sheltered their wealth in secretive tax havens, Paris-based Total said: “The group practices a responsible tax policy.
“Total’s establishment of its subsidiaries is not dictated by tax incentives. It meets operational objectives. In particular, it may be justified by the need to keep dollar accounts in order to avoid currency risks, due to the group’s activity, which is not permitted under French corporate law.
“Of the 30 or so subsidiaries concerned in 2012, 13 remained at the end of 2016.”
The company added: “Total confirms that it has held investments in industrial projects … via companies registered in Bermuda. The group has never hidden the existence of these subsidiaries.
“The use of these companies did not allow any tax optimisation.
“They were set up under non-French legislation to avoid currency risk through the keeping of dollar accounts, while having exactly the same taxation as if these investments had been made via a French company.
“From their creation in 2002 until the end of 2010, these companies have been subject to French tax rules.
“Total did not obtain any tax benefit because of the establishment of these companies in Bermuda in relation to companies incorporated under French law.”
