The fast food chain, which has already been in the sights of the tax administration in recent years, refers to a “routine check”.
The tax authorities are once again interested in the accounts of McDonald's in France, a “routine check” two years after the payment by the fast food chain of a fine of more than a billion euros to avoid criminal prosecution for tax fraud, the group said on Monday, confirming information from L'Informé.
“McDonald's France confirms that the tax administration is currently carrying out a routine check. We are providing all our assistance in a serious and transparent manner, as we have always done in the past,” indicates the group in a statement sent to the 'AFP.
508 million euros fine in 2022
In June 2022, as part of a judicial agreement of public interest (CJIP) which allows companies to escape criminal prosecution by paying a fine, McDonald's paid a fine of 508 million euros. a payment of 737 million euros to the tax authorities for tax regularization for a period running from 2009 to 2020, “without acknowledgment of fault”.
McDonald's “reaffirms its strong commitment to respecting the tax regulations in force, regardless of where the company is located”, according to the statement sent to AFP.
In the 2023 accounts of the French branch of the American company, it is indicated that in 2024 “an accounting audit began in April and is in progress” and “covers the financial years ending 12/31/2021 and 31 /12/2022.”
“Although the administration has not yet specified the areas of audit, the McDonald's France company has transmitted the Accounting Entries File (FEC), the transfer price documentation, and all the accounting documents,” it is specified. . At the end of 2023, no provision has been made in the accounts on this subject, indicates the same document.
200 million euros paid in France
In France, the brand claims that it is “one of the largest contributors to corporate tax”, with nearly 200 million euros paid by McDonald's France and its franchisees.
“At the same time, in accordance with the provisions of the judicial agreement of public interest signed in 2022 with the French Ministry of Justice, we remain at the disposal of the French and British tax authorities who carry out usual technical exchanges to determine the royalty rate of brand validated by all parties concerned”, specifies the group.
The group's approximately 300 franchisees pay rent and a royalty to McDonald's France which, in return, pays a royalty to McDonald's Europe located in London. It is the rate of this royalty to the British entity which posed a problem during the previous tax audit, the French administration deeming it too high, which further reduced the group's profits in France and therefore its taxation.
