McDonald's agrees to pay $1.3 bln to settle French tax dispute

 

By Juliette Jabkhiro, Reuters 

June 16, 2022

 

PARIS, June 16 (Reuters) - McDonald's (MCD.N) has agreed to pay $1.3 billion in fines and back taxes to settle a tax dispute in France, ending a long-running probe into whether the U.S. burger chain had properly declared all of its income in the country.

 

The case centered on allegations, which first surfaced in 2014, that McDonald's diverted fees paid by its franchise restaurants to units in other countries, thereby reducing its taxable income in France.

 

French media reported then that the authorities were scrutinising royalties sent to a Luxembourg subsidiary. McDonald's French headquarters were searched by police in 2016 as part of the probe.

 

McDonald's lawyers said the settlement did not amount to an admission of guilt. "It's a judicial agreement.... to avoid a trial, which is a very long and inevitably uncertain process," lawyer Denis Chemla told reporters...

 

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https://www.reuters.com/business/french-prosecutor-proposes-mcdonalds-pay-1245-bln-euros-settle-tax-dispute-2022-06-16/