Anorak | McDonald’s Gets Dinged By The French Taxman

McDonald’s Gets Dinged By The French Taxman

by | 27th, January 2014

IT’S something of a pity that the various taxmen across Europe don’t actually understand the tax laws that they’re supposed to be administering. We had the case a couple of weeks back of Italy trying to impost the “Google Tax” in clear violation of EU law and here we’ve the French taxman going after McDonalds. Again, seemingly ignorant of the fact that they’re just not allowed to do this under EU law.

The argument being used is that McDonalds has been charging the French franchises royalty payments. OK, that’s how the whole group works, it’s the franchisees who own the stores and McDonalds charges them a fee for using the name and the menu: a royalty in short . Those royalties are then collected by another McDonalds group company outside France.

McDonald’s is only the latest multinational company to come under scrutiny for allegedly shifting profits and avoiding corporate income taxes through the use of royalty fees paid between business units. French officials in recent years have investigated Google Inc., Inc., Microsoft Corp. and other U.S. companies for shifting profits, though the companies and many tax

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Posted: 27th, January 2014 | In: Money, News Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink