McDonald’s Europe Facing Drama, Authorities Open Tax Fraud Investigation On Continent’s Biggest Fast Food Chain

Dec 02, 2015 07:03 PM EST | By Victoria Guerra

Close

The European Union's antitrust regulator, the continent's Commission, has apparently launched an investigation to look further into the finances of McDonald's Europe franchises, as the biggest fast food chain in the world (and the Old Continent) faces a new claims of tax fraud.

Officials in Brussels have been reviewing cases on this supposed McDonald's tax fraud since last March, particularly in the Luxembourg franchise, and it's not the first time that the Golden Arches faces this kind of scrutiny in the European continent.

According to The Wall Street Journal, this McDonald's Europe investigation started last spring, when the European Commission asked Luxembourg to explain its tax arrangements with the chain, as apparently they've been violating UE regulations; and after months of scrutiny, officials are expected to announce they're moving forward with further investigations by next Thursday.

The commission has just released a report of one McDonald's Europe company from the small landlocked nation, showing insane revenues, as they received almost $900 million on royalties in the fiscal year of 2013 even though they only employed 13 staff, also pointing out that the European franchise recently moved its HQ from the United Kingdom to Geneva, supposedly also over tax evasion.

The Guardian reports that the French have also been looking at McDonald's Europe taxes in the past, as the Luxembourg franchise had posed questions a couple of years back.

According to Quartz, it's not only McDonald's under scrutiny over possible tax evasion in the UE, as a few weeks back it was revealed that Starbucks had also avoided taxes through illegal state aid from the Netherlands, going up to an insane amount of $34 million - and companies like Amazon and Apple Inc. are also under review from authorities in the region.

As far as the chain is concerned, McDonald's Europe has said that, even if an investigation goes forward, they expect it to go favorably.

© 2018 Food World News. All rights reserved. Do not reproduce without permission.

SHARE YOUR THOUGHTS

Get the Most Popular Food Stories in a Weekly Newsletter
Food Biz
Campbell Soup To Sell Danish Snacks Manufacturer To Ferrero Affiliate For $300 Million

Campbell Soup To Sell Danish Snacks Manufacturer To Ferrero Affiliate For $300 Million

Campbell Soup has announced it will sell its Danish baked snacks manufacturer Kelsen Group to CTH Invest, a Belgian holding company affiliated with the Nutella maker Ferrero, for $300 million. The transaction is subject to customary purchase price adjustments, and it is expected to be completed in the first quarter of fiscal 2020.

New Whiskies Well Worth Buying This Summer: Brown Is Beautiful

New Whiskies Well Worth Buying This Summer: Brown Is Beautiful

The newly appointed editor-in-chief of Esquire Magazine, Michael Sebastian, recently told the press that he wants to get away from the idea that the magazine's reader is "a middle-aged white guy who likes brown liquor and brown leather"). Which should send chills down the ad dept's spine working on those Scotch and bourbon accounts!

To Celebrate National Michelada Day On July 12: Everything You Need To Know

To Celebrate National Michelada Day On July 12: Everything You Need To Know

Adding a squeeze of fresh lime and a dash of salt to a lager or pilsner has long been Mexican tradition, and in the 1980s, this practice evolved into the refreshing beer cocktail known as a michelada. The popularity of the drink grew across Mexico and, thanks to the influx of immigrants, it translated well to restaurants and bars across the U.S.

Food Tech
Rosé Wine: Is Oak-Aged Rosé Wine Gilding the Lily?

Rosé Wine: Is Oak-Aged Rosé Wine Gilding the Lily?

Rosé wine is made in almost every region in the world, from many different grape varieties. And rose-colored wine is produced in a sweet, dry, sparkling, and even fortified style. Yet the classic style of dry rosé wine from Provence sets the trend that many other wine-producing regions around the world want to emulate.

Pastry Chef Dominique Ansel Celebrates 15 Years In NYC With A Sweet Tribute To The City

Pastry Chef Dominique Ansel Celebrates 15 Years In NYC With A Sweet Tribute To The City

Dominique Ansel moved from Paris to New York City to work at Daniel Boulud's French flagship Daniel as the executive pastry chef, a position he held for 6 years. Fast forward 15 years later, and Ansel has become a household name after the invention of a certain croissant-donut hybrid, and his namesake bakery has expanded beyond SoHo to include branches around the world.

This Is Where The Piña Colada Was Born

This Is Where The Piña Colada Was Born

As if you ever really need an excuse to order a piña colada, today is National Piña Colada Day, so go ahead and order that creamy, sweet, cocktail-meets-dessert libation that is best served on a sunny, tropical beach somewhere exotic.

Real Time Analytics