LVMH owner denies Paradise Papers wrongdoing

LVMH chairman and CEO Bernard Arnault has denied any wrongdoing after the leakage of the “Paradise Papers.”

Arnault is among the affluent companies and individuals, including HRH Queen Elizabeth II, who has been associated with channeling assets via dubious offshore companies.

Arnault is France’s wealthiest person and a pillar of the fashion community, chairing the group that operates the world’s leading fashion houses, including Louis Vuitton, Céline, Dior and Givenchy.

LVMH Boss denies wrongdoing

According to French newspaper Le Monde, Mr. Arnault may not have reported the full extent of his assets to fiscal authorities, both in France and the United Kingdom. Mr. Arnault subsequently released a statement denying any wrongdoing and has accused Le Monde of “scandalmongering,” who in return has expressed that its investigative report does not claim the LVMH chief executive broke any laws.

The Paradise Papers consists of over 13 million confidential electronic documents relating to offshore investment. The papers were leaked by the German newspaper Süddeutsche Zeitung and then analyzed by a group of international journalists, who are part of the non-International Consortium of Investigative Journalists (ICIJ). The documents originate from the offshore law firm Appleby containing the names of more than 120,000 people and companies who’s financial affairs are mentioned.

Le Monde is included in the ICIJ, which began publishing its findings Nov. 5 across nearly 100 global news organizations.

Le Monde further reported that Mr. Arnault owns a U.K. home, valued at 10 million pounds through a holding company registered in the Channel Island of Jersey, known for its tax breaks.

In his statement to Le Monde, Mr. Arnault said his U.K. home, located outside London, was declared to both the British and French tax authorities, as it is subject to France’s wealth tax.

Photo credit: Michael Klimentyev / Sputnik / AFP