THE WHAT? LVMH Chairman and CEO Bernard Arnault has been ordered by the Paris Administrative Court of Appeal to pay nearly €22.5 million in back taxes, although he intends to challenge the ruling.
THE DETAILS The court ruled that Arnault and his wife owe €12.96 million in additional taxes, social contributions, surcharges and interest relating to 2010, along with €9.5 million in wealth tax assessments covering 2012 to 2015. The decision overturns a 2020 ruling that had cleared the couple of the liabilities. The dispute centres on the tax treatment of payments linked to the Arnault family’s holding company structure, including a capital reduction by Belgian holding company Pilinvest. Arnault’s legal team has confirmed it will appeal the decision before France’s Council of State.
THE WHY? The case highlights ongoing scrutiny of the tax structures used by high-net-worth individuals and major business owners in France, with the outcome potentially influencing future tax disputes involving complex corporate ownership arrangements.
Source: Fashion Network
