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McDonald's to pay France $1.3 billion in tax fraud case: Report

A Paris court approved the settlement Thursday, the French national financial prosecutor's office said

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McDonald's | France

AP | PTI  |  Paris 

McDonald's (Photo: Bloomberg)
McDonald's (Photo: Bloomberg)

McDonald's and related 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 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 .

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.)

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First Published: Fri, June 17 2022. 03:09 IST
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