According to the report, this is the highest amount ever paid to the French government in a tax case. The agreement covers unpaid taxes between 2009 and 2020. It was further stated that in a statement sent by email, McDonald’s said that during this time, the company and its franchisees “paid income tax of more than 2.2 billion euros in France and created almost 25,000 new jobs”.
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McDonald’s has been criticized for reducing the amount of taxed profits in France by transferring some of the profits from its French subsidiaries to its headquarters in Luxembourg. France’s financial prosecutor has launched an investigation into McDonald’s 2016 tax practices following a complaint filed by fast food chain employees, represented by attorney Eva Jolie, a former Green MP.
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McDonald’s tax arrangements with Luxembourg have also been investigated by EU authorities. After a three-year investigation, the European Commission concluded in 2018 that McDonald’s did not enjoy illegal tax treatment from Luxembourg.