This bill is very salty risk of remaining on the stomach of McDonald’s. As the next edition of Capital magazine says, on newsstands on May 25, the McDonald’s juggernaut will have to pay more than 1 billion euros to France to close a dispute with the French tax authorities. This amount, greater than the 965 million euros that Google had to pay in 2019, represents a record. For the moment, the burger giant did not wish to comment on the situation.
McDonald’s had already anticipated things. Indeed, the American company has already set aside $500 million in an account in the first quarter of 2022. An amount dedicated to a possible settlement of a tax issue, according to chief financial officer Kevin Ozan, on April 28. To this fine which will be paid to the National Financial Prosecutor’s Office (PNF) and also a recovery with penalties, imposed by the national and international audit department: a penalty of 600 million euros. The American group has set aside 530 million euros in the balance sheet of its French subsidiary in 2020.
The payment should be made quickly within the framework of a legal agreement of public interest. Set up in 2018, this system aims to put pressure on companies in the event of suspicion of tax evasion to speed up procedures and complete the proceedings initiated.
A case that dates back to 2013
The case began in 2013 with searches at the company’s headquarters in Guyancourt and by the custody of three former leaders: Jean-Pierre Petit, Denis Hennequin and Salvatore Perri. What’s the problem ? The tax services accuse McDonald’s of having applied an abnormally high level of royalties to its restaurants in order to transfer a high proportion of its turnover to Luxembourg and then the United Kingdom.
It is in fact a tax avoidance device. The agreement with the tax authorities will allow the company to secure the acceptable percentage of royalties to be set. At a level below 10%. Today, even large corporations can get caught by the taxman. The purpose of the inspectors is to point out any irregularities. And there, the criticisms are important.
McDonald’s, a passion in France
In France, there are many burger fans. Today, the brand has more than 1,400 restaurants in Franceand plans to open another 300 to 400 by 2029. More than 700 people per second visit a McDonald’s each second. This is colossal. Indeed, most major French cities have at least one McDonald’s outlet. On September 17, 1979, McDonald’s opened its first French establishment in Strasbourg. The success is there and is confirmed over time. Witness the opening in 2003 of the 1000th McDonald’s in France!
There are burgers but also nuggets, salads, desserts. When you want to have a balanced diet, it is better to avoid going too often to fast food. Today there is food education on the subject. In addition, the fast food chain often hires young people, most of the time students. Appropriate hours.
It must also be said that many young people like to eat at fast food. It’s not expensive and it works. McDonald’s also runs major advertising campaigns to bring more and more consumers to their restaurants. Everything is standardized in the establishments such as the tray, the packaging, the products. The idea is for everyone to recognize the McDo brand throughout France.
The fast food chain eliminated straws from cold drinks in 2019, saving 1,200 tonnes of plastic per year. And since March 2021, 100% of the toys on the Happy Meal menu have been designed with renewable and/or recyclable materials, enough to save an additional 3,000 tonnes of plastic each year!
In the weeks and months to come, Objeko will not fail to tell you about the news of McDonald’s.