Bernard Arnault. Photo by Chesnot/Getty Images
According to the court ruling, the couple must pay an additional 12.96 million euros in income tax, social security contributions, and penalties for 2010, as well as 9.5 million euros in wealth tax for 2012–2015, reports the Financial Times.
The tax dispute has been ongoing since 2020. At that time, the Paris Administrative Court ruled that the tax authorities’ claims were unfounded, but the French Ministry of the Economy succeeded in having the case reviewed. After several stages of proceedings, the appellate court upheld the tax authorities’ position.
The dispute centers on the structure of LVMH’s share ownership. According to the publication L’Informé, the Arnault family controls its stake in the group through a network of holding companies, the top tier of which is Pilinvest, a company registered in Belgium. According to the tax authorities, the use of this structure resulted in the family underpaying its tax obligations in France.
During the audit, French tax authorities requested information from the authorities in Luxembourg and the Bahamas, where Bernard Arnault owns a private island. The businessman’s representatives claim that the tax authority went beyond the scope of a standard tax audit and effectively conducted an investigation in violation of legally prescribed procedures. For this reason, the defense intends to seek the annulment of the decision before the Council of State.
According to the Bloomberg Billionaires Index, Bernard Arnault’s net worth is estimated at approximately $165 billion. He is the largest shareholder of LVMH, the richest person in Europe, and ranks among the world’s ten richest people.
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