Last Tuesday was a bad day for the McDonald’s representatives who rejected a magazine claim that French tax official’s suspect the franchise of committing tax fraud, claiming “They have paid One Billion Euros in company taxes since 2009.”
According to a magazine L’Express, French tax representatives suspect McDonald’s of evading taxes of 2.2 billion euros ($3 Billion USD) for income from its 314 locations throughout France. They also reported that, since 2009, the fast-food conglomerate has channeled the money through its Swiss and Luxembourg divisions, so they could avoid paying French corporate profit and less value-added tax.
According to L’Express, “The loss for the France is likely to be several hundred million Euros.”
This is not the first time French tax officials have made a firm stand. In the past, France has made similar allegations against Apple, Amazon, Google and Microsoft. These allegations may point to a shift in French tax policy toward a harder stance on tax evasion in their country.
McDonald’s continues to completely refute the report, even though they admitted to receiving “an information request” from tax officials in France this past October.
For now the largest hamburger giant in the world is holding firm to their statement that it abided by all laws in France that are applicable to corporate fast food chains.
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