The European Commission suspected McDonald's of tax evasion

The European Commission has launched a formal review of the tax agreement between McDonald's and Luxembourg, allegedly allowing the company to evade taxes.

The exact amount that McDonald's is suspected of not paying is unknown. Earlier it was reported that we are talking about a billion euros.

McDonald's denied these allegations, saying that in 2010-2014 the company paid more than $2.1 billion in taxes in Europe, reports The Guardian.

According to the European Commission, in March 2009, the Luxembourg authorities decided that McDonald's Europe Franchise, registered in the duchy, must pay taxes in the United States under an existing double taxation agreement between the United States and Luxembourg.

According to this decree, the company's revenue from the European and Russian McDonald's franchises was channeled through the Swiss branch in the United States. McDonald's was required to provide proof of U.S. tax payments annually.

However, according to American laws, the company had to pay taxes in the country of registration, so McDonald's could not provide confirmation. As a result, in September of the same year, Luxembourg allowed McDonald's not to provide tax data in the United States.

Thus, since 2009, the company has paid practically no taxes either in Luxembourg or in the United States, according to the European Commission.