France suspects evaded McDonald's 2.200 million to finance

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The French tax authorities investigating the hamburger chain McDonald's who suspect that evaded more than 2,200 million euros since 2009 to various subsidiaries in Switzerland and Luxembourg to avoid taxes through a complex assembly through its franchises, reports Wednesday L 'Express.

According to the French Treasury, these assemblies allowed McDonalds avoid paying between 330 and 650 million euros in VAT and profit tax, the weekly said on its website.

The Finance Minister Bernard Cazeneuve said this morning in an interview with France Info radio, he could not give information about this case because it is subject to tax secrecy and generally said to be " relentless " against fraud. " The tax administration has means that when these practices exist, cease," said Cazeneuve.

The U.S. company acknowledged that " like most large companies, we are subject to claims of current information in the inspection of finances we've always responded."

According to L' Express on 15 October, the researchers carried out a search at the headquarters of McDonald's France in Guyancourt, outside Paris, at the Court of Versailles. The mechanism of the alleged fraud is based on the 300 franchises, which operate 80% of the 1,300 restaurants that the group has in France, where McDonald's turnover last year was 4,350 million euros before tax.

These franchises have to pay U.S. giant in monthly fees 4% of its revenue for advertising and between 10% and 20% operating on commission. That money management is carried out by a subsidiary domiciled in Luxembourg, Europe McD Franchising, which in January 2009 opened two branches, one in Illinois, in the United States and Geneva, Switzerland.

This Luxembourg subsidiary, which has 13 employees, receives franchise rights in Europe and an annual transfer to the multinational quantity provided as L' Express.

Through this device, only its turnover in 2012 was more than 1,000 million euros, with a net profit of 172.4 million. And by having the base in Luxembourg, the corporate tax rate to which he was subjected was 1.85 % instead of 33.3 % in France.