French police have raided McDonald’s over possible tax dodging

McDonalds raided by French police

McDonald’s offices in France have been raided by police just outside of Paris. The raid, which occurred last week, is an attempt to find evidence of tax evasion.

French prosecutor’s said on Thursday that the search was conducted after a group of employees at the fast food giant filed a complaint about taking part in tax evasion and money laundering.

McDonald’s had previously been accused of dodging taxes by European officials. French police have been cracking down on corporate tax avoidance.

Frech police in the last week also raided Google’s offices in Paris, also looking for proof of money laundering and tax evasion.

McDonald’s has been accused by the European Commission of signing special deals with Luxembourg that has allowed the company to shift profits while avoid paying taxes on the royalties it collects from franchise restaurants in Europe and Russia.

McDonald’s sells its branding to more than 6,000 franchise restaurants in Europe.

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The company says it is fully cooperating with French authorities. The company recently said it had paid $2.1 billion in corporate taxes to European countries between 2010 and 2014.

International leaders are attempting to stop tax dodging. A new set of international tax rules were agreed upon by 60 countries in 2015.

Written by Lane Hanson

Lane Hanson

Lane Hanson is BusinessPundit's Economy Editor. He reports on major changes in the US and Global Economies. He can be reached at College Reviews.