Monday, January 28, 2013

Arnault Bernalt leave France by high taxes, the logical path to fiscal voracity

President LVHM and fourth richest man in the world, Bernalt Arnault, continues with economic efforts to remove as many of his fortune off French soil, after the government of François Hollande announced a tax increase to 75% for all benefits over a million euros. The saga of Bernalt Arnault, started last summer when it was revealed his intentions to handle dual nationality in Belgium. Now, the French newspaper Libération has confirmed that since the end of 2011, the bulk of fortune and actions LVHM are domiciled in Belgium, not France; operations that have been carried out by many complex corporate transactions.

President of LVHM , Only missing the Belgian parliament granted dual citizenship, which is now denied to the end of December, to follow the same path as other famous French as Gérard Depardieu , who has obtained a Russian passport a few weeks ago. Money knows no borders in a globalized world with freedom of capital movement and the movement of Arnault, Depardieu and other major rich and holding Affelou Alain optics, following in the footsteps of French to leave the country with less voracious economies revenues. Of course, this is logical and predictable movement, when taxes go from a contribution to almost complete confiscation, as is happening in the neighboring country.

The effects for brands LVHM Are they important?

When a president as Bernalt Arnault, who controls the amount of fashion brands that controls and you need to pair several million customers using their products, should think seriously about the effects it can have on your company and its brands a stampede of their country of origin. Right now, this effect boycott their brand, may be important, but much less than it might seem at first, given that global sales of the group and all its articles, representing 11% of total group sales .

Multinational fashion, luxury and distribution as LVHM , Operating globally and is perfectly reasonable that owners try to pay as little tax as possible, especially when the amount of tax to 75% has an almost confiscatory. Even so, you should look in the mirror and control to one of its direct competitors, since the group Pinault-Printemps-Redoute, directed by François Pinault, still in France and its turnover may be greatly encouraged. PPR bill now around 16,000 million euros a year, but like LVHM , The main bulk of the activity is concentrated outside the French soil. In the end, the losers will be the French, not the rest of the world.

What would you do if you leave Amancio Ortega Spain?

The debate raised by the measure is not trivial. In France, Arnault branded as a traitor, filthy rich should leave France and many voices calling for the boycott of its products. To compare based in Spain could see a similar if tessitura get Inditex Amancio Ortega decided (or much of the holding company) outside Spain. What would consumers in these cases?

For despite the first critical voices and attempts to blockade or boycott the brand, Inditex continue to sell in Spain, because there are many people who can see a logical move to curb the voracity through legal tax collection of different governments. In contrast, other people would consume these brands, these products and would encourage the rest to leave him, but the impact on overall numbers, it would not be nearly as significant as for finding the death of the company.

In all these cases, I always like to ask the same question: What would you do if 75% of your benefits were to give to the State? Have you cruzarías of arms? Would you still working so richly to the country or give measures at your fingertips? Do not forget that for all these critical voices, rich copper is anyone better than they by definition and of course, the concept of wealth distribution and "robo authorized" by the State, is a concept that is easily confused with the most occasions. Your turn.

In Jared | Hermès against LVMH The legal battle to keep fashion a familiar brand , Inditex denies closing one of its factories in Spain

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