Under the deal, which was approved by the Paris Court of Justice on Thursday, McDonald’s agreed to pay about 1.25 billion euros ($1.3 billion) in France between 2009 and 2020 to avoid a tax fraud lawsuit.
The presiding judge, Stéphane Noël, approved the payment of the 508m-euro public interest fine accepted by the fast food restaurant chain, and in May approved the payment of 737m euros to the Treasury to regulate its tax. corporate fled.
By accepting the largest public interest agreement (Cijp) ever made with the National Fiscal Attorney (PNF), the group avoids a lawsuit in France and resolves its dispute with both the tax administration and the Public Ministry.
The American network welcomed the “end” of the conflict this Thursday and assured it “is doing everything to comply with the rules”.
“This agreement puts an end to a tax dispute and a faultless judicial investigation,” McDonald’s France wrote in a statement, adding that it is working with the French administration on the tax plan.
The French court suspects that the company, which has been a target of the Treasury since 2014, artificially reduced its profits from 2009 by paying royalties to operate the McDonald’s brand to its Luxembourg-based European parent company.
This led to the absorption of a large part of the margins created by the French restaurants and the reduction of taxes paid in France by the various structures of the group,” the presiding judge said.
PNF prosecutor Jean-François Bohnert stressed that the “maximum amount” of the public interest penalty was applied and said the deal amount represented 469m euros, “2.5 times the value of taxes missed” by the group.
This “factual sanction, both symbolic and economic” confirms Cijp’s “effectiveness” in the field of corporate taxation, adding that “financial sanction is the most appropriate way to respond to transnational fraud”.
A criminal investigation was opened after a complaint by McDonald’s employees in Paris and the CGT union. Employees can still apply to the civil court for compensation.
A coalition of European and American unions and a British poverty-stricken association celebrated “shame” for McDonald’s and “victory” for employees.
source: Noticias
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