The McDonald’s chain has announced it is moving its non-US headquarters back from Luxemburg to London. The fast food chain was lured away in 2009 in part by Luxembourg offering special tax deals. There is no suggestion McDonald’s did anything wrong.
The basic structure of what Luxembourg touted around was it taking a small slice for itself of a company’s EU-wide tax liability, in return to the company getting Luxembourg shelter from what tax would otherwise have been tax paid at the normal, but higher, rate elsewhere. That is Luxemburg took a cut for itself at the expense of its EU partners. EU “solidarity” in action.
But Luxemburg’s actions are now under threat from a EU Commission investigation into alleged sweetheart deals, which may be illegal state aid.
Tax Barrister, Accountant