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Arnault: I’ll sue paper over ‘Get lost’ taunt

France's richest man, Bernard Arnault, said Monday he would sue a newspaper over a front-page headline – "Get lost, you rich idiot!" – which came after he said he was applying for Belgian nationality.

Arnault: I'll sue paper over 'Get lost' taunt
Photo: Nicogenin

Arnault, the boss of the luxury conglomerate LVMH, insists his move is not aimed at avoiding high taxes about to be imposed on the wealthy by France's new Socialist government.

"Bernard Arnault has no other choice, given the extreme vulgarity and the violence of the headline… but to sue Libération," he said in a statement that said he was suing the left-wing daily for libel.

The headline, superimposed on a photo of the smiling LVMH boss carrying a red suitcase, is a play on a comment by ex-president Nicolas Sarkozy, who publicly muttered "Casse-toi, pov' con" ("Get lost, you poor idiot") at a man who refused to shake his hand.

The words became a taunt used by Sarkozy's left-wing critics.

Arnault, the world's fourth-richest man whose fortune Forbes magazine estimates at $41 billion, was close to Sarkozy.

He rejected criticism that he was being anti-patriotic on Sunday, insisting he was not becoming a tax exile, despite seeking Belgian nationality as crisis-hit France moves to impose a 75-percent tax on top earners.

"I am and will remain a tax resident in France and in this regard I will, like all French people, fulfil my fiscal obligations," he told AFP, adding that the bid for dual nationality was "linked to personal reasons".

Following the election of previous Socialist president Francois Mitterrand in 1981, Arnault lived in the United States for three years, returning to France after the Socialists switched to a more conservative economic course.

In a televised interview Sunday evening, President François Hollande, also a Socialist, said Arnault "must weigh up what it means to seek another nationality because we are proud to be French".

"One has to appeal to patriotism during this period," he said.    Arnault's move has been widely condemned by French political parties on both the left and the far-right right as treacherous.

But François Fillon, who was prime minister under Sarkozy, denounced "stupid decisions" on the part of the current government which lead to "terrible results".

British Prime Minister David Cameron triggered a war of words with France in June by vowing to "roll out the red carpet" for French firms if Hollande implemented the new tax rate.

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Reader question: Do I need to declare my non-French bank accounts?

Tax declaration season is upon us and one issue that often catches foreigners in France unaware is bank accounts in their home countries - we explain.

Reader question: Do I need to declare my non-French bank accounts?

Question: I’m living in France and filling in my French tax declaration and have come to the section on foreign bank accounts, investments and holdings – I don’t have shares or investments outside France, are they really asking me about my old account back in the UK that has about 27p in it?

The annual French tax declaration is a comprehensive document, compulsory for almost everyone living in France, in which you’re asked about all your financial affairs. When looking at exactly what you have to declare, the short answer is – everything. For example;

  • If you’re working in France you need to declare your French income – even if you’re an employee and your salary has already been taxed at source.
  • If you’re not working you need to declare all your income, even if it comes from outside France eg a UK or US pension.
  • If you get any income from outside France – eg rental income on a property in another country – you need to declare that too.

For full details on what to declare – click HERE.

It’s important to note that declaring your income does not necessarily mean you will have to pay tax on it – France has dual taxation agreements with most countries so that if you have already paid tax on your income in another country, you won’t be taxed on it again – but you still have to tell the French taxman about it.

When it comes to bank accounts, you also need to declare any bank account that has your name on it – including joint accounts – that are held outside France.

This is in the section of the form for foreign earnings and investments, so it’s easy to miss but it’s an important one for foreign residents, who are likely to have at least one account in their home country.

Ask the expert: How to fill out each section of the French tax declaration

You need to declare each account that that you have – the bank/building society that it is with, the account number and the date you opened the account, so it’s worth getting this information together before you start filling out the form.

You don’t need to declare how much is in each account, but you do need to be careful to declare all accounts that you have – even if they are dormant or only have a tiny amount of cash in them.

If you have cryptocurrency accounts you need to declare them too, although they have their own section.

If you have a PayPal account you might also need to declare that – although only if you use it for business or you have spent more than €10,000 with it in the last year.

Finally if you have insurance policies such as life insurance in another country you need to declare that too.

The good news is that if you declare online, your declaration remembers last year’s information so you don’t need to fill out all this information from scratch every year, but if you have opened a new account in the past year, don’t forget to add it to your declaration.

What happens if you don’t declare them?

You might think that your 27p back in the UK is not very important, in the scheme of things, but not declaring a bank account or investment scheme carries with it hefty penalties – they range from €1,500 to a maximum of €10,000, with €3,000 being the most commonly applied amount. And that fine is per bank account, so if you have several accounts that you haven’t declared the fines can quickly add up.

International money-laundering legislation means that banks and governments share a lot more information these days, so it’s definitely not worth the risk. 

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