McDonald’s could have to undergo an investigation by the European Commission for its tax arrangements.
EU competition commissioner Margrethe Vestager said she is considering trade union allegations that the US firm avoided paying more than €1bn in corporate taxes between 2009 and 2013.
The coalition of European and US unions claim McDonald's diverted €3.7bn of revenues into a Luxembourg subsidiary which had a Swiss branch. It says the company reduced its tax bill by relocating its British HQ to Switzerland.
The unions said the Luxembourg offshoot had revenues of €3.7bn over the five-year period but reported paying €16m in taxes.
Ms Vestager said her office is looking into the information “in order to assess if there is a case.''
McDonald's denies the claims and says it has complied fully with EU tax law.
The EU has been tightening up on what it sees as aggressive tax avoidance by multinational companies. Last year it began investigations into Apple in Ireland, Starbucks in the Netherlands, and Amazon in Luxembourg.
