Canal+ has announced a resolution to its protracted tax dispute with the French National Film Centre (CNC). The disagreement centered on the tax payable on TV services, involving tens of millions of Euros. The company stated in a press release, “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 CNC had initially sought €44 million from Canal+ for the years 2020 and 2021. This settlement, involving a one-off payment, will be reflected in Canal+'s first-half financial statements. While this resolves past liabilities, a significant challenge remains.
A separate and more substantial tax dispute continues concerning €655 million in VAT. The French tax authorities advocate for a 20% VAT rate, aligning with other video-on-demand platforms. Canal+, however, maintains its status as primarily a television channel, arguing for the application of a reduced 10% VAT rate. The outcome of this dispute remains uncertain and will significantly impact Canal+'s financial standing.