HSBC Agrees to Pay $312 Million to Settle French Tax Fraud Charges

Core Viewpoint - HSBC has agreed to pay 268 million euros (approximately $312.9 million) to settle allegations of tax fraud with French authorities, acknowledging its cooperation in the investigation and corrective measures taken [1][3]. Group 1: HSBC's Settlement - The settlement includes fines and back taxes, with HSBC having already paid 35 million euros (about $40.8 million) in interest payments and other sanctions [3]. - French prosecutors allege that HSBC's French arm engaged in intra-group trading transactions from 2014 to 2019 to benefit from a tax exemption, constituting "aggravated tax fraud" [2]. Group 2: Broader Implications - French investigators are examining whether other banks, including Crédit Agricole, have engaged in similar tax avoidance schemes, with estimates suggesting France may have lost up to 4.5 billion euros (about $5.3 billion) in revenue due to these practices [4]. - Crédit Agricole has also settled a French investigation, agreeing to pay 88.2 million euros (approximately $103.4 million) for using dividend-arbitrage trades to avoid withholding taxes [5].