McDonald’s could have to undergo an investigation by the European Commission for its tax arrangements.
EU competition commissioner Margrethe Vestager said she is considering trade union allegations that the US firm avoided paying more than €1bn in corporate taxes between 2009 and 2013.
The coalition of European and US unions claim McDonald's diverted €3.7bn of revenues into a Luxembourg subsidiary which had a Swiss branch. It says the company reduced its tax bill by relocating its British HQ to Switzerland.
The unions said the Luxembourg offshoot had revenues of €3.7bn over the five-year period but reported paying €16m in taxes.
Ms Vestager said her office is looking into the information “in order to assess if there is a case.''
McDonald's denies the claims and says it has complied fully with EU tax law.
The EU has been tightening up on what it sees as aggressive tax avoidance by multinational companies. Last year it began investigations into Apple in Ireland, Starbucks in the Netherlands, and Amazon in Luxembourg.
Comments
The Luxembourg fiasco is typical of a monetary union that has not aligned its fiscal policy in the first place. And so we find countries in the same economic or currency union having different tax standards. So Luxembourg reckons that its actions are all quite legal, and is prepared to allow a huge company like Vodafone to declare its massive profits in Luxembourg through an office which employs only one part-time accountant. And HMRC? Vodafone is too big to upset. Let us persecute Joe Bloggs for an extra tenner instead. It´s easier.
Here we are gradually unearthing the Lux leaks scandal. Showing clearly that the current EC boss Juncker was actively arranging sweetheart tax deals in his native Lux. for favoured companies. And wealthy McDonalds famous for its low paid employees.
Any Brit. stumbling onto Portugal TV will be amazed at the extent of UK election coverage. In comparison to the UK TV which would not spend a minute discussing Portuguese elections.
Amazed at a feature about wealthy Londoners. Every comment about the wealth gap being aimed at his viewers - poorly educated Portuguese. Using their language.
The message being "Stop thinking we are so inferior and that the Brits are that far ahead of us".
Absolutely nothing said about about the huge advantages in the UK. Such as being able to get wealthy in the first place - without the endless intentional obstructions and need for backhanders.