The tax authorities have accused the American fast-food chain of using a subsidiary in Luxembourg – McD Europe Franchising – to redirect profits to countries with lower taxes by excessively charging the French part of the business for brand usage and other services.
French tax authorities have sent McDonald’s a bill of 300 million euros for unpaid corporate tax, which they believe the restaurant chain withdrew through its subsidiary in Luxembourg, as reported by the business magazine L’Expansion.
According to the newspaper, as reported by Reuters, the tax authorities accused the American fast-food chain of using a subsidiary in Luxembourg – McD Europe Franchising – to redirect profits to countries with lower taxes by excessively charging the French part of the business for brand usage and other services.
McDonald’s France declined to comment on the latest developments in the ongoing investigation by the tax authorities in France, which was first revealed in 2014.
– McDonald’s is one of the largest corporate tax payers in France, and we are proud of that, the group stated on Tuesday.
Since 2009, McDonald’s has paid 1.2 billion euros in taxes in France and has invested an additional billion euros, creating 10,000 jobs. In January 2014, McDonald’s confirmed that French tax officials had searched the company’s offices three months earlier after L’Expansion reported suspicions of transferring 2.2 billion euros out of the country to avoid paying taxes.
