The Paris court ruling adds €22.5M in taxes for the LVMH chairman. His net worth has fallen $50B this year as luxury stocks slide. The appeal heads to the Council of State.
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A Paris court ordered Bernard Arnault and his wife to pay nearly €22.5 million in additional taxes, a decision the LVMH chairman plans to challenge. The Paris Administrative Court of Appeal assessed €12.96 million in liabilities for 2010, including unpaid taxes, social contributions, penalties, and interest. A separate €9.5 million covers France's wealth solidarity tax for 2012 through 2015, according to the judgment published July 2 on the court's website.
Arnault's legal team said the ruling will be appealed to the Council of State, France's highest administrative court. A spokesperson told AFP the decision is not final.
The dispute centers on what the court called LVMH Moët Hennessy Louis Vuitton SE's "complex shareholding structure." French outlet l'Informé, which first reported the ruling, said the case involves how tax authorities assessed ownership arrangements within the luxury group.
The tax bill lands as LVMH shares have fallen about 26% since the start of the year. The company reported first-quarter revenue of €19.1 billion, down 6% from the same period last year, reflecting broader weakness in luxury demand.
Arnault holds roughly half of LVMH's shares, along with minority stakes in Hermes and Birkenstock. His net worth has dropped by nearly $50 billion this year, Forbes estimates. The magazine now puts his wealth at about $151 billion, ranking him ninth globally, behind Nvidia CEO Jensen Huang. The Bloomberg Billionaires Index places his fortune at roughly $165 billion, eighth worldwide.
At 77, Arnault remains Europe's richest person. The €22.5 million tax bill is small relative to his fortune. Still, the legal challenge adds uncertainty for LVMH at a time when luxury sector sentiment is already weak. A successful appeal would remove the overhang. A failed challenge, combined with further stock declines, would deepen the wealth erosion.
The Council of State has not set a hearing date. Arnault's net worth stays tied to LVMH's share price and the outcome of the appeal.
For broader context on luxury sector pressures, see our stock market analysis.
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