McDonald's next to face tax probe?

5 May 2015

mcdonalds People are deserting McDonald's and, to make matters worse for the beef dealers, the EU's competition commissioner has floated the idea of expanding a corporate tax investigation to McD's.

Magrethe Vestager said that her charges were looking at whether or not they should launch an inquiry following claims by campaigners and unions of an alleged deal with Luxembourg, which basically allows the burger vendor to hugely reduce their tax bill on European sales.

This investigation would be added to the one that is already swooping down on Luxembourg's tax arrangements with Amazon and Fiat. Of course, the EU is already ferreting around Apple in Ireland and the Dutch wing of Starbucks.

Officials believe that some tax breaks offered to big companies breach Europe's rules on state aid, and basically is tantamount to an unfair subsidy which puts other companies at a massive disadvantage. This all follows the publication of a report by War On Want who reckon that McDonald's siphoned off billions of euros of franchise sales from EU nations between 2009 and 2013.

The report said that McDonald's coughed up €16m in tax, but, if the tax had been paid in the countries that the sales were made, then it is thought that Ronald McDonald would have to pay a total of €1.05bn in tax.

McDonald's have outright rejected these allegations.

TOPICS:   Tax   Restaurants   World News

1 comment

  • jim
    do doo do do dooo i'm laundering it

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