Carmignac Gestion is under investigation from French financial prosecutors over allegations of tax fraud and money laundering.
According to French newspaper Le Monde, the asset manager created by Edouard Carmignac (pictured) and Eric Helderlé nearly 30 years ago is being investigated for payments made to its executives through its Luxembourg-based subsidiary.
The tax authorities are challenging the reasoning behind the firm's decision to pay these employees through dividends instead of a salary and to do so in a country with a favourable tax regime, which meant they were eligible for lower overall taxes.
Carmignac, which has $57bn in assets under management, has denied the allegations in a statement, adding that at no point were clients or partners affected.
The firm said in a statement: "The company absolutely contests both the assessment by the French tax authority and the penal qualification.
"It has initiated proceedings while having paid the tax adjustment amount as a precautionary measure in order to stop the interests accrual."
The firm added: "It is also important to note that this debate is about facts that belong to the past and that the risk no longer exits.
"The dispute with the tax authorities concerns the company, exclusively, and, in no way are the funds concerned."
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