24/7 Newsfeed

Put Reason 24/7 on Your Site

RSS

Follow Reason 24/7 on Twitter and via RSS

Billions of Euros Flow from France to Belgium

Investment vehicles associated with French luxury group LVMH Moet Hennessy Louis Vuitton (MC) have amassed assets totaling €4 billion ($5.2 billion) in neighboring Belgium, where Arnault, LVMH’s principal shareholder as well as its chairman, recently applied for citizenship.

Belgian central bank records show that 12 companies and a private foundation, all connected to LVMH and based in Brussels, have more than tripled their assets since 2008. Olivier Labesse, an LVMH spokesman, says the companies are investment vehicles for $26 billion-a-year LVMH, which he says has made Belgium its “operational center of finance” in recent years to take advantage of more-favorable tax treatment there. Other European companies are doing likewise, he says. The shifting of assets to Belgium “has nothing to do” with Arnault’s personal tax situation, says Labesse.

Source: Bloomberg BusinessWeek. Read full article. (link)

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

  • ant1sthenes||

    So the companies are moving to Eurocrat Central? I think there's some kind of irony there.

advertisement