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The
case centered on allegations, which first surfaced in 2014, that
McDonald's diverted fees paid by its franchise restaurants to
units in other countries, thereby reducing its taxable income in
France.
French media reported then that the authorities were
scrutinising royalties sent to a Luxembourg subsidiary.
McDonald's French headquarters were searched by police in 2016
as part of the probe.
McDonald's lawyers said the settlement did not amount to an
admission of guilt. "It's a judicial agreement.... to avoid a
trial, which is a very long and inevitably uncertain process,"
lawyer Denis Chemla told reporters.
The settlement is similar to a $1 billion accord reached by
Google, now Alphabet Inc, in 2019 to end a French case where it
had also been accused of unfairly shifting profits.
McDonald's has 1,500 restaurants in France, many of which are
franchises that pay a licensing fee to McDonald's for use of the
brand, information-technology systems and restaurant decoration.
In a statement on Thursday, McDonald's said the fiscal agreement
reached - which ends both tax and criminal cases against it -
covered the use of its brand and know-how for the years from
2009-2020.
It said that over that period the company had paid more than 2.2
billion euros ($2.29 billion) of taxes in France and created
almost 25,000 jobs.
($1 = 0.9608 euros)
(Reporting by Juliette Jabkhiro; writing by Silvia Aloisi;
editing by Jason Neely and Jane Merriman)
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