Bernard Arnault Ordered to Pay €22.5 Million in Back Taxes, Plans Appeal
Bernard Arnault, CEO of luxury conglomerate LVMH and France’s richest person, has been ordered by the Paris Administrative Court of Appeal to pay nearly €22.5 million in back taxes. The ruling requires Arnault and his wife to pay €12.96 million in additional tax assessments related to 2010, including taxes, social contributions, penalties, and interest, along with €9.5 million in wealth tax covering the years 2012 to 2015. The decision overturns a 2020 ruling that had cleared the couple of all related tax liabilities.
The case stems from a long-running dispute over the Arnault family’s financial arrangements and LVMH’s ownership structure. French authorities argued that payments made following a €50.02 million capital reduction by Belgian holding company Pilinvest should be treated as taxable income. During the investigation, France also sought assistance from Luxembourg and the Bahamas, where Arnault owns an island. Arnault’s legal team maintains that tax authorities failed to follow the proper procedures during their investigation and announced that the ruling will be appealed before France’s Council of State.
The dispute has renewed scrutiny of tax practices among France’s wealthiest individuals. Reports describe the Arnault family’s complex network of holding companies as central to the case, while the ruling follows years of legal challenges by French authorities. Arnault, whose fortune is estimated at $165 billion by the Bloomberg Billionaires Index, has previously criticized proposals for wealth taxes, including economist Gabriel Zucman’s call for a 2% levy on ultra-rich individuals. The case also echoes previous high-profile tax investigations involving prominent French business families.
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