McDonald’s to pay 1.2 billion euros to avoid fraud lawsuit

posted on 06/16/2022 09:03

  (credit: Kirill KUDRYAVTSEV / AFP)

(credit: Kirill KUDRYAVTSEV / AFP)

McDonald’s has agreed to pay around 1.25 billion euros ($1.3 billion) in France to avoid a lawsuit for tax fraud between 2009 and 2020, according to the agreement validated on Thursday by the Court. of Justice of Paris.

The president of the court, Stéphane Noël, validated the payment of a public interest fine of 508 million euros, accepted by the chain of fast food restaurants, which also approved in May the payment of 737 million euros to the Treasury to regularize its tax. corporate evaded.

By accepting this public interest agreement (Cijp), the largest ever concluded with the National Financial Attorney (PNF), the group avoids a lawsuit in France and resolves its dispute with both the tax administration and the Public Ministry.

The American network welcomed the “end” of the dispute this Thursday and assured that “it has done everything to adapt to the rules”.

“This settlement puts an end to a tax dispute and a no-fault judicial investigation,” McDonald’s France wrote in a statement, adding that it works with the French administration on its tax plan.

This “led to the absorption of a large part of the margins generated by French restaurants and the reduction of taxes paid in France by the various structures of the group”, said the president of the court.

The PNF prosecutor, Jean-François Bohnert, stressed that the “maximum amount” of the public interest fine was applied, and indicated that the amount of the agreement represents “2.5 times the value of evaded taxes” by the group, 469 million euros.

This “real sanction, both symbolic and economic”, confirms the “effectiveness” of the Cijp in the field of corporate taxation, “in which the financial sanction is the most appropriate means to respond to transnational fraud”, he added.

The criminal investigation was opened after a complaint by McDonald’s workers in Paris and the CGT union.

Employees can still apply to a civil court for damages.

A coalition of European and American unions and a British association fighting poverty celebrated the “shame” for McDonald’s and the “victory” for employees.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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