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McDonald's Agrees to Pay US$ 1,3 Billion to Settle French Tax Dispute

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McDonald's has agreed to pay around US$ 1,3 billion in fines and back taxes to settle a tax dispute in France. REUTERS/Yves Herman/File Photo GLOBAL BUSINESS WEEK AHEAD

KONTAN.CO.ID - PARIS. McDonald's has agreed to pay around US$ 1,3 billion in fines and back taxes to settle a tax dispute in France. A judge said on Thursday.

The case centered on allegations, which first surfaced in 2014, that the US burger chain diverted profits made in France to Luxembourg to pay lower taxes.

French media reported then that the authorities were scrutinising royalties sent to a Luxembourg subsidiary. McDonald's - whose French headquarters were investigated by police as part of the probe - at the time denied any wrongdoing.

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