McDonald's France fined €300 million for channelling profits through Luxembourg
McDonald's France now has to pay 300 million euros in taxes in France for channelling profits through Luxembourg and other countries with lower tax rates, and therefore paid lower tax in France.
(ADW) McDonald's France now has to pay 300 million euros in taxes in France for channelling profits through Luxembourg and other countries with lower tax rates, and therefore paid lower tax in France.
According to British newspaper "The Telegraph", French authorities have accused the American fast food chain of using a company based in Luxembourg - McD Europe Franchising - to invoice the company's activities in France.
The report states that McDonald's France did not comment on claims that it funnelled profits through Luxembourg and Switzerland, but did respond by saying it "is a taxpayer who pays much tax in France" and that it "is proud of it."
The company said it has paid 1.2 billion euros in taxes in France, has invested over one billion euros in the country and employed 15,000 people there since 2009.
French authorities launched an investigation into McDonald's' tax affairs in 2013, as part of a broader case of multinationals that redirected their profits abroad, in order to pay less tax in France.
In February, the French tax authorities demanded that Google, another Luxembourg resident, pay the sum of 1.6 billion euros in taxes that had not been paid in France.
