This is legal news that Wolters Kluwer would have wished not to have to publish. Indeed, their tax optimisation techniques just suffered a severe loss against the French labor rights.
In 2007, the Dutch media and editing group Wolters Kluwer decided to merge several companies. This project was called the “COSMOS project”. As part of the restructuring, the subsidiary Wolters Kluwer France (WKF) borrowed 445 millions of euro from the parent company Wolters Kluwer (HWKF) at a higher rate than the normal market rate.
The high debt of WKF resulted in the cancellation of the employees profit sharing payments while it previously was about 5 millions a year. The parent company in The Netherlands, thanks to the tax optimization, was able to generate 555 million euros of yearly dividends.