McDonald’s to pay France £1bn in tax fraud case

McDonald’s France and related companies have agreed to pay more than 1.2 billion euros (£1 billion) to the French state to settle a case in which the fast-food giant was accused of years of tax evasion.

A Paris court approved the settlement on Thursday, the national financial prosecutor’s office said.

McDonald’s said the settlement was the result of “productive discussions” with tax authorities.

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The prosecutor’s office said McDonald’s France and other related companies agreed to pay a total of 1.24 billion euros in fines, penalties and back taxes to settle the case after years of negotiations.

McDonald’s France and related companies have agreed to pay more than 1.2 billion euros (£1 billion) to the French state to settle a case in which the fast-food giant was accused of years of tax evasion.

The company was accused of hiding French profits in lower-tax Luxembourg from 2009 to 2020.

McDonald’s said in a statement that it had already paid 2.2 billion euros (£1.8 billion) in taxes over that period. It did not comment on the accusations.

“The majority of the anticipated tax settlement has already been accrued for” and was reflected in the company’s last quarterly earnings.