McDonald's has not paid corporation tax in Luxembourg or the US on royalties paid by franchises in Europe and Russia since 2009 due to tax rulings in Luxembourg, regulators said.
"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," European Competition Commissioner Margrethe Vestager said.
"The purpose of double taxation treaties between countries is to avoid double taxation – not to justify double non-taxation."
