LES Restos du Cœur, one of France’s most cherished charitable organisations, serves as a lifeline for those grappling with food insecurity.
I vividly remember its annual winter campaigns, where everyone, despite their own difficulties, gave a bit to support those in need.
But it continues to exist, a testament to the ongoing struggle faced by many who cannot afford the basic necessity of putting food on the table for themselves and their families. This is precisely what a recent report from the European Taxation Observatory, led by economist Gabriel Zucman, delves into. More than a hundred researchers from around the world, working with the Paris School of Economics, initiated this report in March 2021, co-financed by the European Commission.
The “Paradise Papers” in 2017 uncovered that even our most generous Arnault himself had assets in at least six tax havens.A year later, a report from the French Court of Auditors exposed the Louis Vuitton Foundation for allegedly helping LVMH evade €518m in corporate taxes, which would account for roughly 8.1% of the total tax benefits granted by the government to businesses for corporate sponsorship during this period.
This could severely undermine the functioning of democracy and erode trust in institutions. And citizens are supposed to be grateful for one big donation at the height of media attention? So, for example, an American company currently avoiding taxes by storing profits in a tax haven will have to give 15% of those profits to the United States. Or a British company paying 9% tax in a low-tax country will now owe the United Kingdom the remaining 6% in taxes.