PARIS: McDonald’s France has racked up €300 million in unpaid tax bills, according to reports and apparently the French taxman has demanded it back.
McDonald’s France has been sent a bill for unpaid taxes on profits that are said to have been siphoned through Switzerland and Luxembourg, reported L’Express newspaper here the other day.
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The paper reported that the bill of €300 million was sent by tax authorities late last year.
McDonald’s France was taken to task for the use of the “McD Europe Franchising” entity in Luxembourg, which it is believed to have used for billing the French arm of the chain for the use of the famed McDonald’s brand.
McDonald’s has so far refused to comment to the media about massive bill, but has stated that it is “one of the biggest tax-paying companies in France”.
It added has paid €1.2 billion in tax since 2009 and created 10,000 jobs in the process.
The topic made headlines in January 2014, after French magazine L’Express revealed that tax officials already suspected the burger chain of tax avoidance in France.
“The loss for the French state is likely to be several hundred million euros,” the paper reported at the time.
It added that French tax authorities searched the main office of McDonald’s in France on October 15th, 2013.
But McDonald’s “firmly” denied the report, saying it complies with “applicable laws in France” and all its franchised restaurants in the country pay corporate tax in France.
“They have paid one billion euros in company taxes since 2009,” the company said.
McDonald’s did confirm, however, “an information request” from French tax authorities in October, 2013.
France has over 1,300 McDonald’s stores – the second highest in Europe after Germany. The chain boasts annual sales in France of just over €4.4 billion, making France the biggest earner in Europe.
