4b LVMH amassed assets totaling EUR Belgium

  Company in connection with French billionaire Bernard Arnault, LVMH Moet Hennessy Louis Vuitton raised € 4000000000 (Dh19.27 billion euros) of assets in Belgium, where he most recently applied for citizenship.

Belgian Central Bank records show that 12 companies and a private foundation, all connected with LVMH and based in Brussels, more than tripled its assets has since 2008.

Olivier Labesse, a spokesman for LVMH said that companies are investing their vehicles LVMH, which has an annual turnover of $ 26 billion (Dh95.4 billion euros). The Paris-based company is Belgium "operational center of finance" in recent years to take advantage of a more favorable tax treatment there, he said. Transfer of assets in Belgium "has nothing to do" with the personal tax situation Arnault said Labesse.

Arnault, 63, chairman and CEO of LVMH, and the richest man in France - with a net worth of $ 25.7 billion, according to Bloomberg billionaires - has sparked an outcry in France this month when he said he wanted to have the Belgian nationality, together with President François Hollande is planning a tax of 75 percent on income over $ 1 million impose.

Belgian income tax and inheritance tax are lower than in France, unlike in France, Belgium, personal wealth is not taxed. The head of LVMH said it will maintain their French nationality and continues to pay French taxes.

12 Belgian investment companies present assets of less than € 100,000 to more than 2.6 billion euros, recent reports of the Central Bank. Its balance sheet total not more than 4 billion euros compared to 1.3 billion in 2008. They employ seven people according to the documents.

Arnault heirs

Show only businesses, records show that in 2008 the Belgian, Arnault has created a private foundation called ProtectInvestAlliance whose charter says it is Arnault heirs "to protect the financial interests and assets".

The foundation now has assets of only a few thousand euros, says his charter it could be used after his death in order to protect the interests of his heirs in Pilinvest, one of the 12 investment companies.

Pilinvest the last statement of the Central Bank, in 2009, reported € 242 million in assets. LVMH spokesman Labesse refused to answer questions about the Foundation, citing a company policy against private finance Arnault commented.

Investment companies of LVMH, the first disclosed last week by the Workers' Party of Belgium, are caused controversy in Belgium because they pay very little tax.

Citizenship efforts

They reported € 630.4 million profit in 2009, while the use of deductions to reduce their tax liability only 24.2 million, said David Pestieau, leader of the Labour Party Research Department, analyzed the annual reports of companies. He calls the company "no more than a post office box" that can LVMH the French to escape tax.

A Belgian TV crew visited 13th September modest office building in Brussels, where most shops are located. Companies were listed on a sign in front of a closed door, knocked as a reporter, said an inner voice: "No one is here."

Belgian newspapers quoted the mayor of the district of Uccle Brussels said last week that Arnault said in late 2011 that he will go to Belgium because he was dissatisfied with the French tax policies did. Arnault said his "personal action" is not intended to send a political message or billionaire evade taxes Holland allegedly.

French Finance Minister Pierre Moscovici said yesterday that the 75-percent tax to remain in place for two years.

"Patriotic action"

"We are not watering down the measure," he said in an interview with RTL radio. "This is a strong degree of patriotism. Those who became rich during the period can help to turn a patriotic way to the country."

In order to benefit from lower tax rates in Belgium Arnault would not need to be a Belgian citizen - although it would be necessary to have his main residence there.

Arnault said he wanted a Belgian passport, because he wants to invest. Local investment, however, said he would not benefit with citizenship.