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

McDonald's France and related companies settled a case in which McDonald's was accused of long-term tax evasion by paying the French government 1.2 billion euros ($1.3 billion).

McDonald's France, McDonald's System of France, MCD Luxembourg Real Estate, and other related companies entered into a settlement agreement with the prosecutor's office in which they agreed to pay a total of 1.24 billion euros ($1.29 billion) in fines, penalties, and back taxes.

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.

Company profits were allegedly hidden in Luxembourg from 2009-2020, and French profits artificially understated.

16 June 2022