"Being accused of tax optimization when we are the group that pays the most taxes?": Bernard Arnault's bad faith before the Senate

The hearing derailed somewhat into a debate about the press. Bernard Arnault was upset that L'Humanité had made its front page about the 1,200 job cuts in the Champagne and Cognac houses owned by his group, and complained about it to the highest levels. Before answering any questions, he accused the rapporteur, who happens to be the newspaper's director, of attacking him, even though the articles published that day had no direct connection with the subject of the commission of inquiry: public aid to large companies .

Fabien Gay, who was accused, retorted that he did not hold the journalists' pen, "unlike yourself," he supposed, in light of the double page published on Monday by Les Échos - owned by Bernard Arnault - titled " bosses face the traps of commissions of inquiry," comparing Fabien Gay to an inquisitor and describing the said commission as "political demagogy."

The senators managed to refocus the subject. They were able to discuss the public aid received by LVMH in France: €64.5 million in tax credits in 2023 and €193 million in contribution reductions, which the group's management linked to the €6 billion in corporate tax paid worldwide, half of which in France.

Fabien Gay returned to the charge, citing dividend increases and the share buyback plan : "Do you understand that it might be shocking that a group that receives aid and distributes massive amounts of money to its shareholders is cutting 1,200 jobs?" Bernard Arnault again challenged the term, while his right-hand man simply justified the fact that it was normal to remunerate shareholders.

The issue of tax-free purchases was then raised. François-Henri Pinault, who was questioned last week, acknowledged that 20% of the Kering group's sales in France are made using this mechanism, whereby VAT on luxury goods is refunded to the buyer. At LVMH, 20% and 25% of the €7 billion made in France are also tax-free.

"This is absolutely not tax relief, even indirect," the management defended itself, citing a British study, to assure that the cost of stopping the tax exemption would be much worse, in terms of loss of attractiveness, than maintaining it.

More generally, the richest man in France has categorically denied any tax optimization, let alone tax evasion , despite LVMH's involvement in the LuxLeaks and Paradise Papers scandals, published by Le Monde . "Being accused of tax optimization when we are the group that pays the most taxes?" he fumed. "Le Monde is an LFI-supporting newspaper, and I tell you, the best thing in it is the crossword puzzles." His son-in-law, Xavier Niel, a shareholder in Le Monde, will appreciate that.