France's richest man Arnault hit with €22.5M tax bill
France's richest man Arnault, LVMH chairman Bernard Arnault, and his wife have been ordered to pay nearly €22.5 million ($25.7 million) in additional French taxes after a Paris administrative court of appeal ruling published July 2. The assessment covers 2010 income-related charges and 2012–2015 wealth solidarity tax linked to the luxury group's complex shareholding structure. Arnault's spokesman said the decision will be appealed to France's Council of State.
Key Takeaways
- Bernard Arnault and his wife owe roughly €22.5 million in back taxes and related charges, according to a Paris appeals court decision cited by AFP and reported by Fortune.
- €12.96 million relates to 2010 income tax, social contributions, surcharges and late-payment interest; €9.5 million covers France's wealth solidarity tax from 2012 through 2015.
- The dispute centres on the complex shareholding structure behind LVMH, first detailed by investigative outlet l'Informé.
- Arnault remains France's and Europe's richest person, ranked eighth globally with about $165 billion in net worth on the Bloomberg Billionaires Index.
- The ruling is not final: Arnault's team plans to challenge it before France's highest administrative court.
What happened in Arnault's tax case?
A Paris administrative court of appeal has assessed Bernard Arnault and his wife with nearly €22.5 million in additional taxes, according to a decision published July 2 on the court's website and cited by AFP. Fortune reported the news on July 5, noting that the LVMH chief executive and his spouse must settle the bill with French tax authorities.
Investigative outlet l'Informé first reported the ruling. The heart of the matter concerns the complex shareholding of LVMH Moët Hennessy Louis Vuitton SE, according to that outlet. During the investigation, France also sought assistance from authorities in Luxembourg and the Bahamas, according to the court decision.
Why does this matter for France's richest billionaire?
For Arnault, the assessment is a public setback in his dispute with French tax authorities, even though the sum is modest relative to his fortune. The Bloomberg Billionaires Index puts his net worth at about $165 billion, making him France's richest man Arnault by a wide margin and the world's eighth-wealthiest person.
The case also draws attention to how the global luxury goods conglomerate is held through a complex shareholding structure. Readers tracking billionaire finances can find more coverage in our Net Worth & Wealth section.
How much does Arnault owe and for which years?
The appeals court broke the liability into two parts. Arnault and his wife must pay €12.96 million in additional contributions for 2010, including income tax, social contributions, surcharges and late-payment interest. A separate €9.5 million charge covers France's wealth solidarity tax for the years 2012 through 2015.
Fortune converted the total to roughly $25.7 million. Public relations representatives for Arnault did not immediately respond to a Bloomberg request for comment when the story was published.
What happens next for Arnault and LVMH?
Arnault is not accepting the ruling as final. A spokesman told AFP on Saturday that the court's decision will be appealed to the Council of State, France's highest administrative court. That means the €22.5 million bill could still change before any payment is settled.
The appeal keeps a spotlight on tax planning at the top of the global luxury goods conglomerate Arnault leads as the case moves to France's highest administrative court.