To avoid being charged with a crime in France, the fast-food behemoth has agreed to pay a sizable fine
According to AFP, a Paris court struck an arrangement on Thursday that requires US fast food major McDonald’s to pay €1.25 billion ($1.3 billion) in France to avoid prosecution for tax evasion between 2009 and 2020.
According to reports, the settlement, which consists of a 508 million euro fine and 737 million euro in back taxes already agreed upon in May, is the second-largest tax settlement in French history. Years prior, the US corporation was charged with inflating its reported profits to lower its tax obligation.
According to Chief Financial Prosecutor Jean-Francois Bohnert, “the validation of the agreement indicates the end of the prosecution, subject to payment of the fine,” according to a statement obtained by AFP.
He claims that under the terms of the agreement, the fine is the “highest sum imaginable” and McDonald’s would pay “2.5 times the amount of tax saved.”