Dec 8 McDonald's Corp said on Thursday
it would move its international tax base to the United Kingdom
from Luxembourg after coming under increased scrutiny from
European Union regulators over its tax arrangements in the small
McDonald's said it would create a new international holding
company domiciled in the UK that would receive the majority of
royalties from licensing deals outside the United States.
"We are aligning our corporate structure with the way we do
business, which is no longer in geographies, but in segments
that group together countries with common market and growth
characteristics," McDonald's said in a statement.
The move will also help to cut costs, McDonald's said.
The reorganization comes amid an investigation by the EU
into what it says are sweetheart tax deals that smaller states
in the bloc offer to multinational companies to lure jobs and
In August, the EU ordered Apple Inc to pay Ireland
unpaid taxes of up to 13 billion euros ($13.8 billion), ruling
that the iPhone maker had received illegal state aid.
McDonald's potentially faced an order from the bloc to pay
back taxes of $500 million to Luxembourg, the Financial Times
reported in September. on.ft.com/2cIJH7i
McDonald's said in July it would create over 5,000 jobs in
Britain by the end of 2017, in a sign of its commitment to the
country after the vote on June 23 to leave the EU.
$1 = 0.9414 euros)
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Ted