Fast food titan McDonald’s is set to shell out more than a billion euros to start a row with French authorities over tax evasion.
A deal between McDonald’s tax authorities was given the green light Thursday in a Paris court.
The American giant will reimburse 737 million euros in unpaid taxes and a fine of 508 million euros, said a spokesman for the general directorate of public finances. The bill covers unpaid taxes between 2009 and 2020.
In 2014, it was alleged that McDonald’s had diverted fees paid by its franchised restaurants to arms in other countries, avoiding a larger tax bill in France.
In a statement, McDonald’s said the company and its franchisees had “paid more than 2.2 billion euros in corporation tax in France and created almost 25,000 new jobs”.
“This agreement puts an end to a tax case and a judicial investigation without admission of wrongdoing,” the company added.
“McDonald’s France is working proactively with the French tax authorities to agree the current and future level of brand and know-how fees,” he said.
In other news for the fast food operator, the UK’s largest McDonald’s franchisee, Atul Pathak, has sold to join Germany’s Doner Kebab.
Pathak operated 43 McDonald’s restaurants and employed over 3,500 workers.
Now, the businessman plans to help Germany’s Doner Kebab open 78 restaurants in 2022.