McDonald’s to pay France $1.3 billion in tax fraud case: Report
McDonald’s France and related companies have agreed to pay over 1.2 billion euros ($1.3 billion) to the French state to settle a case in which the fast-food giant was accused of years of tax evasion.
A Paris court approved the settlement Thursday, the French national financial prosecutor’s office said.
McDonald’s said the settlement was the result of productive discussions with French tax authorities.
The decision means a tax fraud investigation targeting the company, opened after a legal complaint by unions in 2016, will be closed.
The prosecutor’s office said McDonald’s France, McDonald’s System of France, MCD Luxembourg Real Estate and other related companies agreed to pay a total of 1.24 billion euros ($1.29 billion) in fines, penalties and back taxes to settle the case after years of negotiations.
The company was accused of hiding French profits in lower-tax Luxembourg from 2009-2020, and reporting artificially low profits in France.
McDonald’s Corp. said in a statement that it had already paid 2.2 billion euros in taxes over that period.
It did not comment on the accusations.
The majority of the anticipated tax settlement has already been accrued for and was reflected in the company’s last quarterly earnings, and the remainder will be reflected in its second-quarter results, the company said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Comments are closed.