The company could face a payout of up to €300m...
McDonald's has been sent a bill for taxes which it is being accused of not paying in France as part of a broader crackdown on profit shifting and tax avoidance by multinational companies in the country.
The Financial Times quotes sources who are familiar with the situation who say that the French finance ministry has taken issue with the amount of money that the French operation is paying to its Luxembourg-based affiliate.
Reports in France suggest that the company could face a €300m payout - including €100m in fines.
In response to a request for a comment on the reports the US fast food giant said, "McDonald’s is one of the biggest taxpayers in France and we are proud of it."
It added that has paid €1.2bn in taxes since 2009 and invested more than €1bn and created in excess of 15,000 jobs in the country.
Tax secrecy rules prevent the French finance ministry from commenting.
In December of last year, the European Commission accused Luxembourg of creating a tax scheme for McDonald’s which allows the group to pay no tax on European royalties.
Margrethe Vestager, EU competition commissioner commented on these previous allegations, saying, "A tax ruling that agrees to McDonald’s paying no tax on their European royalties either in Luxembourg or in the US has to be looked at very carefully under EU state aid rules."
"The purpose of double taxation treaties between countries is to avoid double taxation — not to justify double non-taxation," she continued.