McDonald's has been accused of super-sized tax avoidance after apparently dodging more than £700million worth of taxes across Europe. The American fast food chain funnelled billions of pounds through Luxembourg to reduce its tax bill significantly, according to a report. Luxembourg has controversially been used as a tax haven by many multi-nationals because it allows companies to pay as little as 1 per cent tax on income. Now, McDonald’s has been branded ‘shameful’ after claims it used an ‘aggressive’ tax loophole to avoid paying around £730million over five years. Appetising: A quarter-pounder from McDonald's, which has been branded 'shameful' over accusations it used a Luxembourg offshoot to avoid paying about £730million to the UK tax man over five years
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War On Want traced McDonald's finances through the tiny country
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It found the firm paid franchise royalties to a Luxembourg offshoot
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Firm also shifted its European HQ from London to Geneva, Switlerland
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Britain is the third largest European market for McDonald’s
A McDonald’s spokesman said: ‘@placeholder complies with applicable laws, including payments of the taxes that are owed in each country in which we operate.