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Paris Court Restores €22.5 M Arnault Tax Bill

7/8/2026

30 3 Full Breakdown

Summary

Story summary

A Paris appeals court reversed a 2020 ruling, reinstating €22.5 million in back taxes for Bernard Arnault and his wife.
French authorities treated €32.18 million of a €49.97 million Pilinvest capital-reduction payment as taxable income, forming the assessment basis.
Arnault and his wife will appeal the ruling to the Conseil d’État.
LVMH paid €5.5 billion in income tax last year, over €300 million above the 2024 level.

History

Historical Context

France first created the solidarity wealth tax (ISF) in 1989, later raising its top rate to 1.5 % on fortunes over €1.3 million, a rule that sparked the 1999 Bettencourt family’s €300 million dispute. A Paris appeals court’s 2024 revival of a €22.5 million back-tax against LVMH chief Bernard Arnault echoes that precedent and foreshadows scrutiny of the IFI-based capital-reduction tax.

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Story summary

A Paris appeals court reversed a 2020 ruling, reinstating €22.5 million in back taxes for Bernard Arnault and his wife.
French authorities treated €32.18 million of a €49.97 million Pilinvest capital-reduction payment as taxable income, forming the assessment basis.
Arnault and his wife will appeal the ruling to the Conseil d’État.
LVMH paid €5.5 billion in income tax last year, over €300 million above the 2024 level.

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