European asset manager Carmignac Gestion is contesting an investigation by French financial prosecutors over tax fraud and money laundering.
Carmignac said in a statement that it denied any wrong doing and has paid an undisclosed amount to the authorities as a precautionary measure to stop interest charges accumulating on any potential fines.
It said: “The company absolutely contests both the assessment by the French tax authority and the penal qualification.
“It has initiated proceedings while having paid the tax adjustment amount as a precautionary measure in order to stop the interests accrual.”
Executive remuneration in the spotlight
Jean Tamalet, a lawyer representing Carmignac Gestion, said the probe did not concern Carmignac Gestion’s handling of its clients’ affairs but instead centred on how it had paid certain executives via dividends.
The firm added: “The complaint is based on elements which form part of a technical and complex tax debate relating to the qualification of intra group dividends.
“The French tax administration is challenging the participation-exemption regime on these dividends. It is also important to note that this debate is about facts that belong to the past and that the risk no longer exits.
“At no time were the interests of our clients and our partners concerned: the dispute with the tax authorities concerns the company, exclusively, and, in no way are the funds concerned.”
The company has about €50bn (£43.6bn) of assets under management.
