McDonald’s to pay France $1.3 billion in tax evasion case: report

McDonald’s France and related companies have agreed to pay more than 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 on Thursday, the national financial prosecutor’s office said.

McDonald’s said the settlement was the result of productive discussions with French tax authorities.

The decision means that a tax evasion investigation against 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 has been accused of hiding French profits in low-tax Luxembourg from 2009 to 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 this period.

He did not comment on the charges.

The majority of the planned tax settlement has already been accounted for and was reflected in the company’s latest quarterly results, and the remainder will be reflected in its second quarter results, the company said.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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