EC: McDonalds Found to be Not Guilty of Supplying Illegal State Aid

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The European Commission has finished its examination concerning the selective non-taxation of McDonald’s revenues in Luxembourg; ultimately finding that it didn’t add up to illicit state aid, as it is in accordance with national tax legislation and the US-Luxembourg double taxation treaty (DTT).

The case was regarding two tax rulings brought into power in 2009 by Luxembourg to McDonald’s, that enabled the conglomerate to pay neither US nor Luxembourg tax on any revenue received from foriegn franchisees in Europe, Russia and Ukraine.