Tax authorities in France are are reviewing the company books there for possibly shifting its income to companies set up in Switzerland and Luxembourg for tax avoidance. Similar allegations have been brought against Prada and Dolce & Gabbana in Italy. Similar allegations were also made against Apple Inc. in 2012.
McDonald’s denies wrongdoing.
France is the company’s second most popular market behind the U.S. Most of its restaurants are owned by franchisees and the franchisees, by agreement, pay their fees directly to a Luxembourg based company. This does not sit well with French tax authorities.
Jeffrey Newman represents whistleblowers