EU Accuses McDonald's Of Cheating On Its Taxes In Luxembourg
European officials are investigating whether McDonald's made illegal tax deals. It's the latest U.S. company to come under fire in the Continent.By Ben Lawson | December 3, 2015
A European Union commission is investigating if McDonald's has an illegal tax agreement with Luxembourg.
The commission says McDonald's isn't paying European royalties in Luxembourg or the U.S. The purpose of agreements like this one are to prevent companies from having to pay taxes on the same thing in two different countries. (Video via McDonald's)
But Margrethe Vestager, EU commissioner for competition, says, "The purpose of Double Taxation treaties between countries is to avoid double taxation – not to justify double non-taxation." (Video via Presidents Institute)