ECONOMY

Credit Agricole seen challenging Emporiki tax verdict

Credit Agricole is expected to file a lawsuit in the coming days challenging a decision by French tax authorities to bar a tax deduction it sought on the sale of its Greek Emporiki unit, French newspaper L’Opinion reported.

Chief Executive Jean-Paul Chifflet has given the green light for the country’s No 3 bank to file a complaint with France’s highest administrative court, the paper said, without citing sources.

Credit Agricole officials declined to comment on the report.

The tax decision unexpectedly cost Credit Agricole 838 million euros, pushing fourth-quarter write-downs at the bank to 4.53 billion.

At issue is whether a change in a tax law passed in August 2012 could be applied retroactively to a recapitalization of Emporiki in July. [Reuters]