EU probes McDonald's tax practices in Luxembourg

BRUSSELS

The European Commission has launched a probe against the global fast-food chain giant McDonald’s over its tax practices in Luxembourg.

The European Union’s executive body would investigate whether the fast-food chain received advantageous tax treatment by Luxembourg, in breach of EU rules.

European Commissioner Margrethe Vestager, in charge of competition policy, said in a statement on Thursday: "A tax ruling that agrees to McDonald's paying no tax on their European royalties either in Luxembourg or in the U.S. has to be looked at very carefully under EU state aid rules".

McDonald’s is the fourth American company to be investigated by the European Commission, which also launched probes against Amazon, Apple and Starbucks over their tax practices.

The company could be required to pay back a large amount of taxes, should EU regulators rule that McDonalds’s did benefit from illegal tax arrangements.

BRUSSELS

The European Commission has launched a probe against the global fast-food chain giant McDonald’s over its tax practices in Luxembourg.

The European Union’s executive body would investigate whether the fast-food chain received advantageous tax treatment by Luxembourg, in breach of EU rules.

McDonald’s is the fourth American company to be investigated by the European Commission, which also launched probes against Amazon, Apple and Starbucks over their tax practices.

The company could be required to pay back a large amount of taxes, should EU regulators rule that McDonalds’s did benefit from illegal tax arrangements.