McDonalds has agreed to pay $ 1.3 billion in fines and retroactive taxes to settle a tax dispute in France, ending a long-running investigation into whether the US burger chain had declared all of its revenue in the country correctly.
The case focuses on allegations that first surfaced in 2014, that the company sent amounts paid by its franchise restaurants to units in other countries, thereby reducing taxable income in France.
The French media then reported that the authorities were considering the rights being sent to a Luxembourg subsidiary. McDonalds headquarters in France were investigated by police in 2016, as part of the investigation.
McDonald’s lawyers say the settlement is not tantamount to a guilty plea.
“It is a court agreement, to avoid a trial, which is a very long and inevitably uncertain process,” lawyer Denis Chemla told reporters.
The settlement is similar to the $ 1 billion reached by Google in 2019 to end a similar case in France, where it was also accused of unfair profit shifting.
Source: Capital
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