Reliance Communications (RCom) has refuted a report in French media, stating stated that the Reliance Flag tax issue pertains to 2008, and the demands “were completely unsustainable and illegal”.

The Anil Ambani group company also denied any “favouritism or gain” from settlement.

During the period under consideration by the French Tax Authorities—2008-2012, which is nearly 10 years ago, Flag France had an operating loss of Rs 20 crore (2.7 million euros). French tax authorities had raised a tax demand of over Rs 1,100 crore for the same period. As per the French tax settlement process as per law, a mutual settlement agreement was signed to pay Rs 56 crore as a final settlement, RCom said in a statement.

Reliance FLAG Atlantic France SAS is a subsidiary of RCom. FLAG France owns a terrestrial cable network and other telecom infrastructure in France.

French newspaper Le Monde in a report alleged that the French authorities waived taxes amounting to Rs 1,200 crore (143 million euros) for Anil Ambani’s France-based company within six months after India and France agreed to the Rafale defence deal in 2015.