McDonald's also risks major tax evasion fine

McDonald's also risks major tax evasion fine

American fast food chain McDonald's may also be served a huge fine for its tax evasion scheme in Luxembourg: rumours say the chain may be forced to pay up to half a billion euro.

Only 1.5 % tax

Back in 2009, McDonald's and Luxembourg signed a very advantageous deal, which resulted in a 1.5 % profit tax on a 1.8 billion dollar (1.6 billion euro) profit. By comparison, the average taxation level in Luxembourg is 29.2 %.

 

If the normal rate applied, then McDonald's faces a 500 million dollar fine in order to rectify the situation. It all depends on what Margrethe Vestager, European Commissioner for Competition, decides.

 

The same European Commissioner already gave Apple a 13 billion euro fine, to be paid to Ireland, for late taxes, while Amazon and Ikea are also under investigation for tax evasion.