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Belgium: EC to investigate tax deal between McDonald's and Luxembourg02:50

Belgium: EC to investigate tax deal between McDonald's and Luxembourg

Belgium, Brussels
December 3, 2015 at 02:49 GMT +00:00 · Published

The European Commission has launched an investigation into the tax agreement made between McDonald's and Luxembourg, spokesperson for the EC's competition policy Ricardo Cardoso announced during a press conference in Brussels, Thursday.

Cardoso said that the EC is investigating a tax ruling which the Luxembourgish authorities issued in 2009 that "basically exempted all of McDonald's Europe Franchising's income from taxation in Luxembourg."

"What will investigate now is whether by giving this particular treatment to McDonald's Europe Franchising, the Luxembourg authorities have selectively derogated from the provisions of the their national tax law and given McDonald's an advantage which would not be available to other companies in a comparable factual and legal situation," Cardoso stated.

Responding to claims that the EC disproportionately targets US companies, Cardoso branded such allegations as "unfounded" and "untrue," adding that "If you want to operate in the EU you are subject to EU rules, EU competition rules and that's what ensures that you can compete on a level plain field."

Discussing double taxation treaties, Cardoso said that "the purpose of the US-Luxembourg one is to avoid double taxation of income which has already been taxed in one of the jurisdictions. In this particular case the tax ruling issue by Luxembourg to McDonald's Europe Franchising it actually appears to be used to justify the opposite, so double non-taxation."

Belgium: EC to investigate tax deal between McDonald's and Luxembourg02:50
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The European Commission has launched an investigation into the tax agreement made between McDonald's and Luxembourg, spokesperson for the EC's competition policy Ricardo Cardoso announced during a press conference in Brussels, Thursday.

Cardoso said that the EC is investigating a tax ruling which the Luxembourgish authorities issued in 2009 that "basically exempted all of McDonald's Europe Franchising's income from taxation in Luxembourg."

"What will investigate now is whether by giving this particular treatment to McDonald's Europe Franchising, the Luxembourg authorities have selectively derogated from the provisions of the their national tax law and given McDonald's an advantage which would not be available to other companies in a comparable factual and legal situation," Cardoso stated.

Responding to claims that the EC disproportionately targets US companies, Cardoso branded such allegations as "unfounded" and "untrue," adding that "If you want to operate in the EU you are subject to EU rules, EU competition rules and that's what ensures that you can compete on a level plain field."

Discussing double taxation treaties, Cardoso said that "the purpose of the US-Luxembourg one is to avoid double taxation of income which has already been taxed in one of the jurisdictions. In this particular case the tax ruling issue by Luxembourg to McDonald's Europe Franchising it actually appears to be used to justify the opposite, so double non-taxation."