Canal+ has agreed not to claim the reimbursement of €120 million in its dispute with the French National Film Centre.
The disagreement related to the tax payable on TV services involved several tens of millions in Euros.
“Canal+ is pleased to have reached an agreement with the CNC regarding the rules applicable to determining the tax basis of the French TST, which settles the disputes relating to past fiscal years and removes uncertainty regarding the possibility of a material additional disbursement,” the company said in a statement.
The CNC had claimed €44 million from it for the years 2020 and 2021.
A one-off payment is expected to be included in Canal’s first-half financial statements with the prospect of future uncertainty now removed.
However, another tax dispute, this time relating to €655 million in VAT, remains ongoing.
The French tax authorities would like to apply VAT at a rate of 20%, the same as for all video-on-demand platforms, while Canal+ argues that it is above all a television channel, and that, as such, it can apply the reduced VAT rate of 10%.
