Arnault’s LVMH Faces Renewed Tax Scrutiny After Court Loss

Wednesday’s decision revives a probe into suspicions that the firm, controlled by the world’s richest man, may have tried to lower its tax bill by pretending it carried out treasury operations in Belgium rather than France. It’s a boost for French authorities and hints at a low bar for justifying the need to carry out a tax raid.

On Wednesday, the top court ruled that mere presumptions of tax fraud are required to authorize a raid under French law. Contrary to what the court of appeals had stated in its 2020 ruling, judges said there was no need for tax officials to demonstrate that the Belgian unit didn’t have enough staff to carry out its treasury activities.

Read more: Where’s Arnault? Tax Officers in LVMH Raid Asked to See Boss

LVMH said in a statement that the group abides strictly by rules and laws applicable in all the countries where it operates. During a 2020 hearing in the case, an attorney for the company described the evidence-gathering raids as “shockingly disproportionate.”