Bernard Arnault, France's Richest Man, to Switch Citizenship Ahead of 75% 'Wealth Tax'
Bernard Arnault, the richest man in France and the fourth richest man in the world, has applied to be a naturalised Belgian citizen ahead of a 75 percent tax on the wealthy in France, reported Bloomberg News on Sunday, sparking concern of a potential mass exodus of the rich over president Francois Hollande's recent reforms.
Belgian newspaper La Libre Belgique was the first to break the news of Arnault's decision on Saturday, after Georges Dallemagne, the chairman of Belgium's naturalisation committee, had insisted that "the case will be treated like any other."
"There are 47,000 on the table. Our committee received the request last week," Dallemagne said.
Then on Sunday, luxury giant LVMH, of which Arnault is the chairman and CEO of, confirmed Arnault's request, but stressed that the billionaire would remain a taxpayer in France.
"The potential granting of the dual French-Belgian citizenship doesn't change anything to this situation nor his determination to keep up with the development of the LVMH group and the consequent creation of jobs in France," the company said.
But the case still manage to catch the attention of Francois Hollande, who called on Arnault to show his "patriotism", with a new, temporary tax for anyone earning more than 1 million euros ($1.28 million) a year looming.
"Our country must be able to count on everyone's contribution to face the deep economic crisis," Hollande said. "Everyone must take part, and I note Arnault said himself he will contribute."
"He (Arnault) should have reflected on what it means to ask for another nationality, because we are proud to be French," Hollande later added, saying, "we have to call on patriotism at this time."
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Arnault, who is worth over $41 billion according to Forbes, has been fiercely critical of Hollande's new policies in the past. The news of him applying for Belgian citizenship as such automatically sparked debate among analysts about his true motivations.
The Wall Street Journal for instance doubted Arnault's immediate statements.
"Arnault says tax rates have nothing to do with his new passport. Sure," the WSJ wrote sarcastically. "No doubt Bernard Arnault, France's richest man, was not thinking about his tax bill when he applied in August for a Belgian passport."
"No doubt the Socialist French government's plan to impose a 75 percent tax on millionaires was the furthest thing from his mind when the 63-year-old native of northern France suddenly spied exciting business opportunities in, er, Liege."
Speaking to FRANCE 24, a Paris-based economist, who preferred to remain anonymous, also recalled Arnault's actions the last time a Socialist Party candidate - Francois Mitterand - was in power in 1981. Back then, Arnault had uprooted his family and headed to the United States for three years.
"This (latest) move is above all a political message he wants to send to the French government," said the economist.
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