October 3, 2016 / 1:15 PM / a year ago

Review of SocGen rogue trading tax credit "possible" - minister

PARIS (Reuters) - French Budget Minister Christian Eckert said on Monday the state might review a tax credit French bank Societe Generale received following rogue trading losses suffered in 2008.

The logo of the French bank Societe Generale is seen in front of the bank's headquarters building at La Defense business and financial district in Courbevoie near Paris, France, April 21, 2016. REUTERS/Gonzalo Fuentes

The government has asked tax authorities to investigate the tax implications of an appellate court ruling last month that former rogue trade Jerome Kerviel pay the bank 1 million euros (£0.86 million) in damages.

“So far the courts had not questioned Societe Generale’s responsibility. The last ruling ... seems to open up this possibility,” Eckert said on BFM Business television.

“I think that a review of the (tax) administration’s previous position based on earlier rulings is possible,” Eckert said, adding tax authorities were due to offer their opinion in the coming weeks, if not days.

SocGen obtained a 2.2 billion euro tax break in relation to the 4.9 billion euros in losses that Kerviel racked up for the bank.

SocGen considers the ruling last month is not likely to jeopardize the tax treatment after it reviewed previous decisions of the Conseil D‘Etat, France’s highest administrative court, a spokesman said on Monday.

Last week SocGen deputy chief executive officer Severin Cabannes told a conference that the appeals court decision would have no impact on the bank’s earnings per share.

Reporting by Leigh Thomas; Additional reporting by Maya Nikolaeva and Yann Le Guernigou; Editing by Ingrid Melander

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below