Billionaire Bernard Arnault, France's richest man, will have to pay €22.5 million in back taxes

Bernard Arnault, CEO of LVMH, as he arrives to participate in the opening ceremony of the 142nd Session of the International Olympic Committee on July 22, 2024, in Paris.
Fabrice Coffrini/AFP
Bernard Arnault, the richest person in France and one of the richest in the world, will have to pay almost €22.5 million in back taxes after a legal dispute that has been going on for years, according to French radio RFI and the Financial Times newspaper.
Arnault is president of the luxury group LVMH, owner of brands such as Louis Vuitton, Christian Dior, Tiffany & Co. and Bulgari.
The decision by the Paris Court of Appeal reversed a 2020 understanding that had freed Arnault and his wife from a tax penalty.
According to the Financial Times, the charge is related to a payment of around €50 million received by the couple after withdrawing resources from a Belgian company that held shares linked to LVMH.
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According to RFI, the dispute involves the way in which the Arnault family controls its stake in LVMH. Instead of owning shares directly, it uses a structure made up of several holding companies (companies created to manage stakes in other companies).
The court concluded that €32.18 million of the €50 million received by the couple from the Belgian company should have been treated as taxable income.
"LVMH is the largest corporate taxpayer in France. The group's general activities also contribute more than 1% of the country's GDP," a spokesperson for Arnault told the Financial Times. "This decision, which reverses both the first instance sentence and a previous decision by the Court of Appeal itself, will be challenged in the State Council."
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Source: G1