Art and money. Tax optimization and brand image

French capital widely uses the creation of private cultural foundations and museums in order to reduce the tax burden and create a positive brand image. This is how art serves the luxury industry and becomes it itself. No bag wants to be just a string bag, it wants to be a piece of art. The result: the arts and culture industry is growing, but the definition of “art” is changing, merging with capital. TheStatusSymbol.com magazine publishes a guide to tax optimization through art in France.

According to French law, namely the Aillagon law, up to 60% of the expenses of a private foundation or enterprise can be de-fiscalized if they have as their goal the “general interest” and “benefit of society.” Naturally, such terms are easy to turn into headlines for an effective marketing strategy. Reconstruction of monuments included in the historical register is also a tool for tax optimization. In addition, it gives the donor the opportunity to write his name into eternity and on the honor board in Versailles or Fontainebleau. Independent French media have repeatedly written that, for example, the construction estimate Louis Vuitton Foundation exceeded expectations by 6-7 times, while the similar state museum of contemporary art Center Pompidou Metz spent much less on construction: the cost per square meter is 24 times less in the state project. In general, thanks to tax incentives, the state actually paid up to 80% of the construction costs of the Fondation Louis Vuitton, which was called in the press a “gift to Paris.”

The logic of corporations is this: why pay taxes when this money can be invested in PR and development of your own company.

Arno vs. Pino

The richest French businessmen Bernard Arnault (owner of LVMH) and Francois Pinault (owner of Kering, Christie's) - long-time rivals both in business and in art. Both are collectors of contemporary art, which, by the way, allows for more tax benefits in contrast to antiques, which are a luxury item. In 2006, Pino opens Palazzo Grassi, and in 2009 - Punta della Dogana - centers of contemporary art in Venice. In 2017, a gigantic exhibition was held in Punta della Dogana "Treasures from the Wreck of the Incredible" by Damien Hirst, recognized as the most discussed in 2017.

"Treasures from the Wreck of the Incredible" by Damien Hirst

Hirst had been preparing for the exhibition for 10 years. The ship "Incredible" is his invention. All sculptures were created in workshops and then submerged to the bottom for the purpose of filming promotional videos. They look like archaeological artifacts, pulled out of the depths of the sea after several thousand years of oblivion. Each exhibit is made in three versions: “coral”, raised from the seabed, “treasure” - a relic restored by restorers, and “copy” - a reproduction of a pseudo-historical object. History, archeology and contemporary art are closely intertwined in this project. The sculptures feature the faces of Hirst himself, musician Pharrell Williams, model Kate Moss and others. Like Hollywood directors, producers and screenwriters, the artist creates an incredible story that visitors begin to believe. At the exhibition, truth, fiction, as well as the concepts of original, copy and fake, merge into an organic whole. Being next to a multi-meter statue, an unprepared viewer would readily believe that it was fished out of the sea. There are probably already buyers for such incredible pieces of art.

The exchange will become a museum, and the Samariten store will become a hotel by the end of 2018

Paris will conquer François Pinault by the end of 2018, when the reconstruction of the Bourse de commerce building in the Les Halles district is completed. The Exchange will become a museum of modern art and a display site for the Pinault collection. The temple of capitalism will become a temple of art. Capital and art create a strong alliance. Moreover, by agreement with the Paris mayor's office, the billionaire received a prestigious address for his cultural institution: house 29 on rue Louvre, which replaced the old and more modest house 2 on rue Viarm. Museum of the Pinault-Paris Collection will open to the public in spring 2019.

In 2014, Arnault opened the Fondation Louis Vuitton in the Jardin d'Acclimatation in the prestigious 50th arrondissement of the French capital. According to LVMH's agreement with the Paris mayor's office, after 20 years the museum will become the property of the city. True, it is not entirely clear whether the treasury is ready to take on such an expensive maintenance of the building for the state balance. LVMH has been managing the Acclimatization Park for over 2018 years. In May XNUMX, reconstruction work will be completed, and the green park will become a competitor to Disneyland. So Acclimatization Park will continue to become a domain of LVMH.

In 2020, it is planned to open the LVMH House Museum - Crafts - Talents - Heritage (Maison LVMH - Arts - Talents - Patrimoine) in the building of the State Museum of Folk Arts and Traditions, which was closed in 2005. The press presents the event as “Bernard Arnault will reconstruct the Museum of Popular Arts and Traditions”, while in fact the museum will finally “inscribe” the Louis Vuitton brand into the history of art and culture, which will have a “beneficial” effect on the image and, as a result, on sales. Until 2014, the Paris mayor's office spent 33 € per month on maintaining the closed museum building; when the museum is opened, the mayor's office will receive 000 € per year and about 150% of the proceeds from tickets sold.

Bernard Arnault continues his triumphant conquest of Paris. For several years now, his company has been reconstructing the legendary historical department store. La Samaritaine, which after reconstruction will become a department store and a luxury residential area - a hotel The White Horse, which includes a small space for low-income social housing.