France v. McDonald’s France
France v. McDonald’s France
Jurisdiction
France, French Tax Authority (le fisc)
Summary of Facts
McDonald’s agreed to pay €1.25 billion ($1.31 billion) following an investigation into its transfer pricing arrangements, marking one of the largest tax settlements in French history.
Key Issues
The investigation revealed that McDonald’s shifted profits abroad through increased royalties, avoiding substantial tax payments in France.
Decision and Reasoning
The settlement included a public interest fine and back taxes, emphasizing the importance of financial justice and compliance with local tax laws.
Importance and Implications
This case reinforces the need for multinational corporations to maintain transparent and compliant transfer pricing practices to avoid significant penalties.
