A judicial investigation is underway into the organization of companies and holdings within the Mulliez family, who are considered the “French retail kings” with properties such as Auchan, Leroy Merlin, Auto 5, Decathlon and Krëfel. The court in Paris is investigating whether there has been tax fraud.
The investigation was opened in 2012 following a complaint from a member of the family, who felt injustice had been done to him. He denounced the existence of very high loans, without written proof and without interest granted, which also potentially gave the right to tax reductions in France. According to a judicial source, this may constitute tax fraud or money laundering.
As part of the investigation, searches were carried out in France, Luxembourg and Belgium in 2016. Two members of the family, Jérôme and Thierry Mulliez, have already been charged with breach of trust and money laundering, the French news agency AFP said. The court also took action against three family companies. The investigating judges concluded their investigation last year, but are still waiting for information from the tax authorities that could possibly change the conclusions.
A lawyer for the family told AFP that the family structure only aims to diversify investments abroad and fits into a logic of economic development. “No tax benefit was sought or achieved. None,” it said. The lawyer said that those involved responded serenely and have submitted comments requesting the dismissal of the case.
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Tags: Investigation tax fraud family holding company Auchan Decathlon
