London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

McDonald's to pay France €1.2 billion to settle tax evasion case

McDonald's to pay France €1.2 billion to settle tax evasion case

French prosecutors alleged that the US fast food giant was hiding French profits in Luxembourg, where taxes are lower, from 2009 to 2020 and reporting artificially low profits in France.
McDonald's has agreed to pay France €1.2 billion (£1 billion) to settle a case in which the fast-food giant was accused of years of tax evasion.

French prosecutors alleged that the US fast food giant was hiding French profits in Luxembourg, where taxes are lower, from 2009 to 2020 and reporting artificially low profits in France.

The company was accused of doing this by diverting fees paid by its franchise restaurants in France to units in other countries, which reduced its taxable income.

French media first reported in 2014 that authorities were investigating royalties sent to a McDonald's subsidiary in Luxembourg.

Following a legal complaint by unions in 2016, a tax fraud probe was launched and McDonald's French headquarters were searched.

McDonald's lawyers said the settlement was not 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.

McDonald's is the latest in a string of multinational firms that have been accused of tax dodging.

Google, now Alphabet Inc, agreed to pay France $1 billion in 2019 in a similar settlement after being accused of unfairly shifting profits in the country.

McDonald's has 1,500 restaurants in France, many of which are franchises and pay a licensing fee for using the brand, IT systems and restaurant decoration.

The company said the settlement covered the use of its brand and know-how for the years from 2009 to 2020.

The tax and criminal cases it faces in France will now be closed.

McDonald's France, McDonald's System of France, MCD Luxembourg Real Estate and other related companies agreed to pay the fines, penalties and back taxes worth €1.2 billion.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×