The chiefs of France's top two banks denied giving tax evaders a helping hand, insisting they upheld all laws and did not tolerate clients concealing their assets from tax inspectors.
Appearing before a committee of legislators on Tuesday, both BNP Paribas Chairman Baudouin Prot and Societe Generale Chief Executive Frederic Oudea defended their records against a backdrop of concerns about rich citizens avoiding tax by stashing cash in offshore accounts.
The election-year probe by a recently formed committee of the French Senate is examining the issue of capital flight and whether some banks are making it easy for its wealthiest citizens to dodge taxes.
Reading heavily from notes, Prot - who for more than a decade helped oversee BNP's expansion into a sprawling but euro zone-focused banking giant - played down the bank's activities in tax havens during a grilling from the panel.
“We are no longer present in any tax havens as defined by the OECD,” Prot told senators. “Our policy is to be rigorous and vigilant ... no opacity is tolerated.”
Oudea, who gave a more off-the-cuff presentation which he wrapped up with a pitch for a more lenient approach to taxation and bank regulation, also insisted his bank had scaled back operations in any tax havens.
Confirming SocGen did operate in tax-light territories such as Luxembourg, Switzerland and Jersey, Oudea said the businesses were legitimate and linked to private banking.
IN THE SPOTLIGHT
He also told senators his bank did not operate in any OECD-listed tax haven and had stopped operating in Brunei and the Philippines.
“We have in no way softened our vigilance (against fraud),” Oudea said, speaking in a hearing room at the Senate building decorated with pictures of symbols of French technological prowess such as the A380 superjumbo and Ariane rocket.
France's presidential election campaign and the euro zone debt crisis have put tax-evasion concerns back on the map, with banks particularly in the spotlight over their activities in tax havens.
Responding to queries over a long list of BNP subsidiaries based in tax shelters like Luxembourg, the Cayman Islands and Switzerland - none of which are defined as tax havens by the OECD - Prot said many were either non-operational or insignificant.
“We have really gone on a crackdown against these subsidiaries,” he said, adding that many in the Cayman Islands and Luxembourg were being liquidated.
Pressed on whether BNP offered its clients investments or structures like trusts specifically to help them avoid tax, Prot denied such practices and said French clients were not sold any products - like trusts - targeted at international clients.
He added that even when trusts were created for international clients, the guidelines were clear. “If there is no transparency, the bank will not take part,” he said. - Reuters
Appearing before a committee of legislators on Tuesday, both BNP Paribas Chairman Baudouin Prot and Societe Generale Chief Executive Frederic Oudea defended their records against a backdrop of concerns about rich citizens avoiding tax by stashing cash in offshore accounts.
The election-year probe by a recently formed committee of the French Senate is examining the issue of capital flight and whether some banks are making it easy for its wealthiest citizens to dodge taxes.
Reading heavily from notes, Prot - who for more than a decade helped oversee BNP's expansion into a sprawling but euro zone-focused banking giant - played down the bank's activities in tax havens during a grilling from the panel.
“We are no longer present in any tax havens as defined by the OECD,” Prot told senators. “Our policy is to be rigorous and vigilant ... no opacity is tolerated.”
Oudea, who gave a more off-the-cuff presentation which he wrapped up with a pitch for a more lenient approach to taxation and bank regulation, also insisted his bank had scaled back operations in any tax havens.
Confirming SocGen did operate in tax-light territories such as Luxembourg, Switzerland and Jersey, Oudea said the businesses were legitimate and linked to private banking.
IN THE SPOTLIGHT
He also told senators his bank did not operate in any OECD-listed tax haven and had stopped operating in Brunei and the Philippines.
“We have in no way softened our vigilance (against fraud),” Oudea said, speaking in a hearing room at the Senate building decorated with pictures of symbols of French technological prowess such as the A380 superjumbo and Ariane rocket.
France's presidential election campaign and the euro zone debt crisis have put tax-evasion concerns back on the map, with banks particularly in the spotlight over their activities in tax havens.
Responding to queries over a long list of BNP subsidiaries based in tax shelters like Luxembourg, the Cayman Islands and Switzerland - none of which are defined as tax havens by the OECD - Prot said many were either non-operational or insignificant.
“We have really gone on a crackdown against these subsidiaries,” he said, adding that many in the Cayman Islands and Luxembourg were being liquidated.
Pressed on whether BNP offered its clients investments or structures like trusts specifically to help them avoid tax, Prot denied such practices and said French clients were not sold any products - like trusts - targeted at international clients.
He added that even when trusts were created for international clients, the guidelines were clear. “If there is no transparency, the bank will not take part,” he said. - Reuters
