French Finance Minister Bruno Le Maire said on Sunday that he would propose a law “in the coming months” to require bosses of France-based big companies to pay their tax at home.
“We will strengthen by law the rules of tax domicile to ensure that chiefs of large companies, whose headquarters are in France, pay their taxes in France,” Le Maire told France Inter radio. “The legislation would include sanctions for company bosses that would not respect the rule of tax domicile,” he added. According to the French minister, the due bill would target all large companies listed in the CAC40 and SBF-120 indexes on the Paris stock market, in addition to the firms in which the state holds stake. The government’s move to harden the stance against fiscal fraud was prompted by the financial scandal of Renault’s Chief Executive Officer (CEO) Carlos Ghosn.
The 64-business leader was forced to resign, earlier this week, from Renault leadership and that of Renault-Nissan Alliance after inquiry revealed his involvement in financial wrongdoings. In November 2018, Japanese car maker Nissan announced that Ghosn was arrested in Tokyo after an internal inquiry revealed his involvement in financial wrongdoings. He was suspected of under-reporting tens of millions of U.S. dollars in income over eight years.