French Ministry of Economy Withdraws Controversial Tax Provisions Amid CumCum Scandal
The French Ministry withdraws controversial tax provisions amid rising scrutiny and concerns about the CumCum fraud scheme.
Key Points
- • Éric Lombard confirms withdrawal of controversial tax application text.
- • The provisions were criticized for potentially enabling tax fraud.
- • The decision reflects increasing pressure from parliamentarians and aims to protect taxpayers.
- • The text will be republished without the contested provisions as the government prepares for the 2026 budget.
On July 24, 2025, Éric Lombard, the French Minister of Economy, announced the withdrawal of disputed provisions related to dividend taxation aimed at combating the widespread CumCum tax fraud scheme. This decision follows significant criticism from parliamentarians who argued that the initially proposed text could inadvertently facilitate tax evasion by foreign shareholders. Lombard declared, "I have decided to withdraw the text in question," asserting that the existing law was already “sufficiently precise” and did not necessitate modifications.