Europe's Richest Man Accused of Tax Evasion in France Via Belgian Structure

Bernard Arnault, recognized as Europe's richest individual, is at the center of a tax dispute in France, reportedly utilizing a complex corporate structure involving a Belgian company to minimize his tax liabilities.

The case, as reported by L'Informé, centers on the intricate shareholding arrangement of LVMH, the luxury goods conglomerate. The Arnault family's stake is not held directly but through a series of holding companies, with a Belgian entity named Pilinvest positioned at the apex of this structure. This arrangement allegedly allowed the family to reduce their tax declarations in France.

The French state is appealing a late 2020 decision by the administrative court of Paris. This decision had initially sided with Arnault and his wife, agreeing to a request to waive additional income tax payments and refund wealth taxes. The dispute specifically concerns income tax and social contributions for 2010, amounting to 12.96 million euros, and wealth tax for the years 2012 to 2015, totaling 9.5 million euros. A spokesperson for the family stated that they intend to appeal the case to the Council of State.

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The family Arnault is not directly in the capital of the group, but through a series of holdings. At the very top of the pyramid is a Belgian company, Pilinvest