Bernard Arnault faces €22.5 million French tax bill
A Paris administrative appeals court assessed Bernard Arnault and his wife over taxes tied to 2010 and 2012-2015, AFP and Bloomberg reported.
By Hana Yoshida · Markets Reporter
2 min read
Bernard Arnault and his wife face nearly €22.5 million, or about $25.7 million, in additional French tax assessments after a Paris administrative appeals court ruling, according to AFP and Bloomberg. The case matters because it involves the head of LVMH Moët Hennessy Louis Vuitton SE and France’s wealthiest person, according to the Bloomberg Billionaires Index.
The Paris administrative court of appeal decision, published July 2 on the administrative body’s website, set out two main amounts, Bloomberg reported, citing AFP and the ruling. For 2010, the court assessed €12.96 million in additional contributions, a category that includes taxes, social contributions, surcharges and interest for late payment.
The decision also assessed €9.5 million tied to France’s wealth solidarity tax for the years 2012 through 2015, according to Bloomberg’s account of the ruling. Together, the two amounts total close to €22.5 million.
A spokesman for Arnault told AFP on Saturday that the ruling will be challenged before the Council of State, France’s highest administrative court. Bloomberg reported that public relations representatives for Arnault did not immediately respond to its request for comment.
Shareholding structure at issue
Online outlet l’Informé, which Bloomberg said first reported the court ruling, described the dispute as centered on the complex ownership structure of LVMH. Bloomberg reported that the court decision said French authorities sought help from Luxembourg and the Bahamas during the investigation.
Arnault is chairman and chief executive of LVMH, the luxury group behind brands including Louis Vuitton and Moët Hennessy. Bloomberg reported that Arnault ranks as the richest person in France and Europe, and eighth worldwide, according to the Bloomberg Billionaires Index.
The index puts his fortune at about $165 billion, Bloomberg reported. The tax ruling is separate from LVMH’s operating results and concerns personal tax assessments involving Arnault and his wife, according to the court decision cited by AFP and Bloomberg.
The case now moves toward another stage if Arnault proceeds with the appeal described by his spokesman to AFP. The Council of State would review the administrative appeals court ruling under France’s administrative court system.
This story draws on original reporting from Fortune.