McDonald’s breaks record in tax history in France, fines very heavy

This is a very salty risk of living on Bill McDonald’s stomach. As noted in the next edition of Capital magazine, on newsstands on May 25, the McDonald’s juggler will have to pay more than 1 billion euros to France to close a dispute with the French tax authorities. Google had to pay 965 million euros in 2019, an amount that represents a record. At the moment, the burger giant does not wish to comment on the situation.

McDonald’s Anticipated

McDonald’s already had an anticipation of things. In fact, the US company has already set aside $500 million in an account in the first quarter of 2022. According to Chief Financial Officer Kevin Ozan on April 28, the amount devoted to a possible settlement of a tax issue. For this fine that will be paid to the National Financial Prosecutor’s Office (PNF) and also the recovery with the penalty imposed by the National and International Audit Department: a fine of 600 million euros. The American group has set aside 530 million euros in the balance sheet of its French subsidiary in 2020.

Payment must be made quickly within the framework of a legal agreement of public interest. Established in 2018, the system aims to put pressure on companies to expedite processes and complete the proceedings initiated in case of suspicion of tax evasion.

a case from 2013

The case began in 2013 with a search of the company’s headquarters in Guanacourt and the custody of three former leaders: Jean-Pierre Petit, Denis Hennequin and Salvatore Perri. what’s the problem ? Tax Services accused McDonald’s of imposing unusually high levels of royalties on its restaurants in order to move a high proportion of its business to Luxembourg and then to the United Kingdom.

It really is a tax avoidance tool. The agreement with the tax authorities will allow the company to determine the allowable percentage of royalties. at a level below 10%. Today, even large corporations can be caught by the tax authorities. The purpose of inspectors is to point out any irregularities. And there, the criticisms are important.

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A Passion at McDonald’s, France

There are a lot of burger fans in France. Today, the brand has over 1,400 restaurants. FranceAnd there are plans to open 300 to 400 more by 2029. More than 700 people travel per second a McDonald’s every second. This is vast. Indeed, most major French cities have at least one McDonald’s outlet. On September 17, 1979, McDonald’s opened its first French establishment in Strasbourg. Success is there and is confirmed over time. Witness the opening of the 1000th McDonald’s in France in 2003!

There are burgers but also nuggets, salads, desserts. When you want to have a balanced diet, it is better that you avoid going on fast food often. Today there is food education on this topic. In addition, fast food chains often hire young people, mostly students. suitable hours.

It must also be said that many young people like to eat fast food. It’s not expensive and it works. McDonald’s also runs major advertising campaigns to drive more consumers to its restaurants. Everything is standardized in installations like trays, packaging, products. The idea is for everyone to have the Macado brand recognized throughout France.

The fast food chain eliminated straws from cold drinks in 2019, saving 1,200 tonnes of plastic per year. And as of March 2021, 100% of the toys on the Happy Meal menu are designed with renewable and/or recyclable materials, enough to save an additional 3,000 tons of plastic each year!

Objeco won’t miss out on keeping you up to date with McDonald’s news in the coming weeks and months.

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About the Author: Forrest Morton

Organizer. Zombie aficionado. Wannabe reader. Passionate writer. Twitter lover. Music scholar. Web expert.

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