Bernard Arnault faces 22.5 million euro tax adjustment

Paris - Bernard Arnault, the head of global luxury giant LVMH, has been subject to a tax adjustment of nearly 22.5 million euros, according to a decision by the Paris Administrative Court seen by AFP.

The billionaire, France's wealthiest person, and his wife can appeal to the Conseil d'Etat.

Specifically, the ruling, dated July 2, levies 12.96 million euros against Mr Arnault and his wife for “additional income tax and social security contributions” for 2010. A further 9.5 million euros is for the solidarity tax on wealth between 2012 and 2015.

In December 2020, the Paris Administrative Court had accepted a request from the couple for a discharge of the additional income tax contributions and a refund of the wealth tax paid between 2012 and 2015. The minister of economy and finance had asked the Administrative Court of Appeal in November 2023 to annul a December 2020 judgment by the Paris Administrative Court.

The case centred on the “complex shareholding structure” of LVMH, according to the online media outlet l'Informé, which revealed the administrative court's decision on Saturday.

“The Arnault family does not have a direct stake in the luxury group's capital, but through a cascade of holding companies,” l'Informé added. “At the very top of this pyramid is a Belgian company, Pilinvest,” which allows France's wealthiest person to reduce his tax liability, according to l'Informé. Contacted by AFP, the LVMH group had not yet responded by Saturday afternoon.