Report: a third of French banks’ foreign subsidiaries are in tax havens

   0   0 Blog, Reports

PPFJFrom the French platform on tax havens Plateforme Paradis Fiscaux et Judiciaires, coordinated by CCFD-Terre Solidaire and Secours Catholique Caritas France, a new report looking at the first figures published by French banks this year, under requirements for country by country reporting. Congratulations to our French colleagues for gaining widespread media coverage in France, and for their role in pushing the French government to act on transparency more actively than in other countries.

France is generally ahead of the pack on requiring country by country reporting from banks, though so far it’s only partial: we get the activities of subsidiairies and turnover and employees on a country by country basis; next year they will publish profits and taxes. The report is only in French so far (an English translation is due next month, we’re told) but here are the key findings:

  • A third of the foreign subsidiairies of the five largest French banks are located in tax havens
  • 26 percent of French banks’ international turnover are located in tax havens
  • Subsidiaries in tax havens are mainly specialized in investment solutions, structured finance and asset management. Their retail activities are a lot less important than in other countries (half as much for BNP Paribas, a third as much for Crédit Agricole)
  • Employees of banks located in tax havens are two times more profitable than employees located in other countries (more than 3 times for Societe Generale and 13 times for the BPCE Irish employee).
  • Luxembourg is the favourite tax haven of French banks : 117 of their subsidiairies are located in Luxemburg (then come Belgium, Hong Kong and Switzerland)
  • The Cayman Islands are the black hole of banking business, with a very disparate turnover (sometimes negative), fifteen subsidiaries for the major French banks and no employees.
  • Tax havens are more attractive than emerging countries: the turnover of French banks in emerging countries is 5 times less important in the BRICS than in tax havens.

The full report is here.



Related Posts

UN must defend target to curtail multinational companies’ tax abuse

Photo by Luca Santori, Creative Commons LicenseThe Tax Justice Network, The Independent Commission for the Reform of International Corporate Taxation, and the Global Alliance for Tax Justice call on the UN Secretary General to make sure the commitment to action on tax abuses by multinational companies remains part of the new UN Sustainable Development Goals.


The BVI: Responsible for worldwide tax losses of $37.5 billion a year

BVI report blogAn extraordinary report by consultants Capital Economics, for BVI Finance, claims that the British Virgin Islands are responsible for $1.5 trillion of assets invested around the world, and that these result in 2.2 million jobs and $15 billion in tax revenue. A better approximation would be that the BVI imposes global tax losses of $37.5 […]


Event: Making Tax Work for Women in the UK and Globally

Invitation_ Tax and Gender eventOn Wednesday 28th June 2017 at 16.30 our very own Liz Nelson will be speaking at an event in London that aims to bring together gender and tax justice advocates to highlight the need for coherent and gender-responsive fiscal policies to safeguard the rights of women and girls both in the UK and globally. The […]


Historic event on women, human rights and tax justice in Bogota

BogotaLast week civil society organisations, researchers, labour union activists and policy makers met in Bogota, Colombia to explore how tax justice issues can ensure governments, multinational corporations and others meet their obligations to women in order to secure their full range of human rights. The Women’s Rights and Tax Justice conference opened with a conversation […]


The Offshore Wrapper: the Panama Papers, one year on

Photos from the Protest outside PwC 1 Embankment Place, part of the Global week of action for tax justiceWelcome to the Offshore Wrapper – your weekly update from TJN.  Happy Paniversary! This week it’s been one year since the Panama Papers were leaked, and a number of organisations around the world have been marking the occasion though the global week of action for tax justice. In London, activists from the TJN and the […]


Leave a Reply

Your email address will not be published. Required fields are marked *

Back to Top