France-Switzerland Tax Deal Costs €300M Annually, Benefits Total, Renault, Michelin

Nov 28, 2024, 09:29 AM

A longstanding administrative agreement between France and Switzerland is under scrutiny for enabling major French multinational companies, including Total, Renault, and Michelin, to benefit from a favorable tax regime. This arrangement, described as 'évasion sociale XXL,' allows high-ranking executives to avoid paying French social security contributions through a 'régime dérogatoire avantageux,' resulting in an annual loss of €300 million to France's public finances. While the agreement is legal, it has drawn criticism for being ethically questionable. The French government is reportedly considering withdrawing from the agreement to address the financial losses.