(Reuters) – Orange announced on Friday that it had appealed a decision by the National Financial Prosecutor’s Office to seize the sum of 312 million euros as part of a dispute with the French tax administration over the VAT rates applied by the operator between 2017 and 2019.

The seizure was pronounced on October 7 and “the corresponding sums were deposited with the Caisse des Dépôts et Consignations and remain unavailable to Orange during the procedure”, specifies the French group in a press release.

Orange adds that it is collaborating “in complete transparency” with the PNF in this preliminary phase of investigations.

“These sums will appear in a specific account in Orange’s balance sheet, and will appear as such in its accounts as of December 31, 2024. This entry does not call into question the holding of the group’s financial guidance,” underlines the operator, who deplores “ such a precautionary measure”.

“These are assets which are frozen but which still appear in our accounts”, which will lead to “a change in the net debt”, specified a spokesperson to Reuters.

Orange says it “firmly” contests the adjustments and the counts of infringement with which it is accused in the context of this case, which concerns the VAT rates applied to promotional offers marketed between 2017 and 2019.

At the time, Orange and other providers applied different VAT rates depending on the service included in their packages.

Customers paid a 5% rate for television services but had to pay a 20% tax for telephone, which is the normal rate in France.

Canal+ and the telecommunications group SFR are also the subject of an investigation into the VAT rates charged, reports the daily L’Informé.

(Written by Etienne Breban, with Gianluca Lo Nostro, edited by Sophie Louet)

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