Tax fraud allegations in France: McDonald’s pays 1.25 billion euros

Status: 06/16/2022 13:53

Fast food giant McDonald’s wants to shut down tax fraud investigations in France for a large sum. The agreement with the judiciary is intended to end a one-year trial.

McDonald’s pays € 1.25 billion to the French judiciary to avoid tax fraud investigations. The president of the Paris Court of Justice today confirmed the corresponding agreement between the financial prosecutor’s office and the US fast food chain, the prosecutor announced.

Out-of-court settlements worth billions are known mainly from the United States. In early 2016, the Public Prosecutor’s Office launched a preliminary investigation into McDonald’s France after union representatives filed a lawsuit for allegedly organized tax fraud. According to information at the time, this was an annual amount of 75 million euros.

litigation is avoided

The French judiciary suspects that McDonald’s has artificially reduced its profits in France by paying royalties to its European parent company in Luxembourg. With the deal, the US group avoids a court case. A restaurant chain lawyer said the payment was not an admission of guilt, but was intended to avert a lengthy lawsuit with an uncertain outcome.

McDonald’s share contained in the leading US Dow Jones index was listed pre-market in a generally weak market, however, more than one percent in the red.

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