Patrick Drahy maneuvers not to pay taxes on his artwork

A battalion of tax experts, likely to have old holding and front companies in the Caribbean. These are the components of the process that allowed Patrick Drahi to avoid paying a single euro in tax on the sale of his huge collection of artwork, estimated at no less than 750 million euros. Strict tax optimization, within legality, according to a survey Globalism and swiss magazine Heidi News.

The emails, sales contracts, internal memos, and spreadsheets that help piece together this story are among the many confidential documents stolen by cybercriminal group Hive in a hack targeting Patrick Drahi’s holding company, Altice, and posted online in August, after a ransom demand was unresolved. are fulfilled. the scientist choose thatUse of this data despite its criminal origin because of their public interest. These documents were previously mentioned by the site reflets.infoalready revealed by the media and telecom tycoon – the eleventh wealth of France according to the magazine Challenges The holder of BFM-TV and SFR – tax practices that raise questions regarding European regulations.

The story begins at 5 rue Eugène-Ruppert in Luxembourg City. The financial heart of the Drahi empire is located in this small, soulless mall. At the same address there are dozens of mailboxes: on the one hand, the holding companies of the Altice Group (media, communications); On the other hand, companies that hold the private investments of their founder Patrick Drahy. One of them, called “Before SA”, until recently held a portfolio of more than 200 artworks to make prestigious museums green with envy: Five Picassos, eleven Magritte, eight Chagall, Modigliani, the Bacon triptych, two sculptures by Rodin and many works by Giacometti. ..

LuxLeaks changed the rules of the game

Fortunately, the pieces of this treasure were not displayed on the walls of 5 rue Eugène-Ruppert, which were recently damaged by water damage: they were stored in a safe, in private houses, in the Geneva Free Port. or in warehouses. From the Sotheby auction house, which Mr. Drahy bought in 2019. By keeping his collection through a company in Luxembourg, the billionaire, who is based in Switzerland, has benefited from a favorable tax regime, allowing him to hope that no capital gains tax will be paid on the day Who sells part of it to a buyer or to his children.

However, this hope was dashed when the European Union (EU) adopted the ‘ATAD 2’ directive in 2017. This text was born After the “LuxLeaks” scandalIt aims to significantly reduce the potential for tax optimization offered by European tax havens such as Luxembourg or the Netherlands. Concretely, it limits the use of some tax deduction devices, notably “CPEC,” which are hybrid financial instruments widely used within the drachian empire. As is often the case, the authorities gave the financial players time to adjust: the reform did not take full effect until 1^Verse January 2022. More than enough time to find a back-up solution.

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