France's richest man fights tax reassessment at top court

Bernard Arnault, the richest man in France and head of luxury giant LVMH, is taking his fight against a tax reassessment to the country's highest administrative court. The billionaire argues that a payout of nearly 50 million euros from a Belgian family holding company, Pilinvest, should be considered a tax-free capital repayment, not taxable income.

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The billionaire announced immediately that he would challenge the ruling before the Conseil d’État, the highest French administrative court.

The Paris Administrative Court of Appeal sided with French tax authorities, ruling that the payout was largely profit distribution. Arnault has vowed to appeal this decision to the Conseil d’État, France's highest administrative court.

This legal battle is more than just about the money for Arnault. He is concerned that a ruling against him could undermine a fundamental principle used by many European family businesses. These companies often use multiple holding companies to maintain generational control over their empires while seeking tax advantages. If the tax authorities prevail, such structures could face increased scrutiny.

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Arnault considers it a tax-free capital repayment.

Arnault, 76, is a prominent figure in France, having transformed LVMH into the world's largest luxury group. He is a frequent presence in the Élysée Palace and often accompanies President Emmanuel Macron on state visits. However, the public's relationship with its super-rich is complex, balancing admiration for their success in promoting French brands with distrust when wealth becomes too conspicuous.

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The French tax authorities, however, concluded that it was largely a profit distribution and therefore taxable income.