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European Commission Publishes Public Version of Letter to Luxembourg on Formal Investigation into Illegal State Aid Provided to McDonald's

09 June 2016

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European Union-Luxembourg-United States

On 6 June 2016, the European Commission published a public version (confidential information removed) of the letter sent to the Luxembourg government on the Commission's decision to initiate a formal State aid investigation into tax rulings provided to McDonald's ({News-2015-12-07/A/2- previous coverage}). The tax rulings in question include a March 2009 ruling in which Luxembourg confirmed that McDonald's Europe Franchising (Luxembourg subsidiary through which McDonald's European franchising royalties are funneled) was not due to pay corporate tax in Luxembourg on the grounds that the profits were subject to taxation in the U.S. based on provisions of the Luxembourg-U.S. tax treaty....