Bernard Arnault ordered to pay €22.5 million in back taxes after Paris court ruling
The Paris administrative court of appeal has ordered LVMH chief Bernard Arnault and his wife to pay nearly €22.5 million in additional taxes, overturning a 2020 ruling. The case involves a complex holding structure topped by Belgian company Pilinvest and will be appealed to the Council of State.
The tax assessment
The Paris administrative court of appeal ruled on July 2 that Bernard Arnault and his wife owe €12.96 million in additional income tax and social contributions for 2010, plus €9.5 million in wealth tax for the years 2012 to 2015. The total assessment of nearly €22.5 million ($25.7 million) was first reported by the online outlet L'Informé on July 4 and confirmed by AFP. Arnault, the CEO of LVMH and France's richest person, ranks eighth globally with a fortune of $165 billion, according to the Bloomberg Billionaires Index.
- 2010 income tax & social contributions
- 12.96 € million
- 2012-2015 wealth tax
- 9.5 € million
A cascade of holdings
The dispute centers on the ownership structure of LVMH. The Arnault family does not hold shares directly but through a series of holding companies. At the top sits Pilinvest, a Belgian entity that, according to L'Informé, allows the family to reduce its French tax declaration.
During the investigation, France requested assistance from Luxembourg and the Bahamas, where Arnault owns an island.The Arnault family is not directly present in the capital of the luxury group, but via a cascade of holdings.
Legal back-and-forth
The case has a long procedural history. In December 2020, the Paris administrative court discharged the couple from all these taxes and penalties. The Economy Minister at the time, Bruno Le Maire, appealed that decision in March 2021 and again in November 2023. The Council of State eventually sent the matter back to the administrative court of appeal, which has now ruled against the Arnaults.
- Paris administrative court discharges Arnault and his wife from all taxes and penalties.
- Economy Minister Bruno Le Maire appeals the discharge decision.
- Economy Minister files a second appeal; Council of State later remands the case to the appeal court.
- Paris administrative court of appeal rules against Arnault, ordering €22.5 million payment.
Appeal to the highest court
Arnault's spokesperson told AFP that the family will appeal to the Council of State.
The couple argues that the tax authorities conducted an examination of their personal tax situation without respecting the required guarantees, rather than a simple document check. The appeal is not automatically suspensive, but the couple can request a stay of execution pending the final judgment.This decision, which overturns the one made at first instance and even the one already rendered by this court, will be appealed to the Council of State.
