French luxury billionaire Bernard Arnault and his wife have been ordered to pay nearly €22.5 million (about $25.7 million) in additional taxes after a ruling by the Paris administrative court of appeal. According to Bloomberg report, which cited AFP and the Paris administrative court of appeal’s decision, the assessment relates to tax liabilities covering several years. Arnault has decided to challenge the ruling before France’s highest administrative court.
The decision, published on July 2 on the court’s website, requires the couple to pay additional taxes, social contributions, surcharges and late-payment interest for 2010, reported Bloomberg citing AFP. It also covers France’s former wealth solidarity tax for the years from 2012 to 2015.
An Arnault spokesperson told AFP that the legal fight will continue. “The ruling will be appealed to the Council of State,” the spokesperson said.
The Council of State is France’s highest administrative court and reviews appeals against decisions made by lower administrative courts.
Why did French court order additional taxes?
According to Bloomberg, citing AFP, the dispute centres on the ownership structure of LVMH Moet Hennessy Louis Vuitton SE. Court documents describe the matter as involving the company’s “complex shareholding” arrangement, which became the focus of an investigation by French tax authorities.
The ruling orders Arnault and his wife to pay about €12.96 million for the 2010 tax year. That amount includes additional taxes, social contributions, surcharges and interest for late payment. The court also assessed another €9.5 million under France’s wealth solidarity tax for the years between 2012 and 2015.
French news outlet l’Informe first reported the court’s decision. During the investigation, French authorities also sought assistance from officials in Luxembourg and the Bahamas to gather information related to the case, according to the court ruling cited by AFP.
Arnault will now take the matter to the Council of State, where he will seek to overturn the appellate court’s decision. The outcome of that appeal will determine whether the tax assessment remains in place.
Who is Bernard Arnault?
Bernard Arnault serves as chairman and chief executive officer of LVMH, the world’s largest luxury goods company. The group owns some of the biggest brands in fashion, jewellery, cosmetics, watches and wines and spirits.
According to the Bloomberg Billionaires Index, Arnault is the richest person in France and Europe. He currently ranks as the world’s eighth-richest person, with an estimated net worth of about $165 billion.