NCC April McKinsey: More Controversy
April 27, 2022
The real news outfit AP (once Associated Press) published “Macron holds 1st big rally; Rivals stir up ‘McKinsey Affair’.” [If this link 404s, please, contact your local AP professional, not me.] The main point of the news story is that the entity name “McKinsey” is not the blue chip, money machine. Nope. McKinsey, in the French context of Covid and re-election, means allegations of about the use of American consultants. What adds some zip to the blue chip company’s name is its association by the French senate with allegedly improper tax practices. The venerable and litigious AP uses the word “dodging” in the article. Another point is that fees paid to consulting firms have risen. Now this is not news to anyone with some familiarity with the practices of blue chip consulting companies. For me, the key sentence in the AP’s article is this sentence:
…the [French senate] report says McKinsey hasn’t paid corporate profit taxes in France since at least 2011, but instead used a system of ‘tax optimization’ through its Delaware-based parent company.
That’s nifty. More than a decade. Impressive enforcement by the French tax authority. I suppose the good news is that the tax optimization method did not make use of banking facilities in the Cayman Islands. Perhaps McKinsey needs to hire lawyers and its own business advisors. First the opioid misstep in the US and now the French government.
Impressive.
Stephen E Arnold, April 27, 2022
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