Taxes

French Tax Scandal Involves Another Government Official

Finance Minister Pierre Moscovici is said to have kown of his colleague's dealings

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He feels hounded and, like a marked man, says he changes locations every few days.

Less than a month ago, Jerome Cahuzac, France's disgraced former budget minister, was the hunter, with an eye out for any citizen who cheated tax authorities by hiding cash abroad. He was devoted to President Francois Hollande's effort to fill the government's depleted coffers as the economy sputtered.

Cahuzac's belated admission that he kept his own secret offshore accounts is now destabilizing France's Socialist government, less than a year after Hollande assumed office with pledges to replace the perceived "bling-bling" of his conservative predecessor, Nicolas Sarkozy, with moral rectitude.

The scent of scandal expanded this week to Cahuzac's boss, Finance Minister Pierre Moscovici, with allegations by a weekly magazine that he knew of his colleague's guilt in December — a claim Moscovici denies.

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