Bettencourt family pocketed € 300M - April 18, 2011
Back to business in Bettencourt. Reconciled since last December, Liliane Bettencourt, heir to L'Oreal, and his daughter Françoise Bettencourt Meyers, working actively in the management of Tethys and Clymene, the two holding companies responsible for managing the family fortune and owner of 18% stake the cosmetics company. The first fruits of this management amounted to 300 million euros. According to the Journal du Dimanche, it is money that Françoise Bettencourt Meyers affect the result of a subtle tax game.
Specifically, the company Tethys, which has since reconciliation Director Jean-Pierre Meyers, husband of Françoise Bettencourt Meyers, voted after a special general meeting a capital reduction. As its name implies, this operation is to reduce, directly or indirectly, the amount of equity in society.It can be done by a bid for a certain amount of shares outstanding. The latter will then be canceled and the redemption price will be deducted from equity.
Tethys has purchased the 380,000 shares owned by Liliane Bettencourt and her daughter Frances fast cash advance. At 900 euros per share, this means that 300 million must be paid to the latter while the mother must receive 41 million euros.
Operation of law
Rather than paying the 300 million directly to Françoise Bettencourt Meyers, the company Tethys has decided to borrow 100% of this amount to the bank. From an accounting perspective, this takeover will enable Tethys to reduce their taxes by deducting finance costs of the loan. By inflating its debt and reducing its equity, the company should also pay more tax on corporations.These are the dividends that will be paid by L'Oreal for five years which will then allow the company to repay the loan.
For his part, Françoise Bettencourt and puts his hand on a jackpot of 300 million euros during this period. A transaction tax optimization work that illustrates the cooperation of the family clan and that is perfectly legal.
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