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ARTICLE · 04 DECEMBER 2018

EU Commission Finds No Illegal State Aid In The McDonald's Case

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On 19 September 2018, the EU Commission announced its decision in the McDonald's State Aid investigations. According to a press release the Commission has found that the non-taxation...

GlobalTax
Oliver R. Hoor
Oliver R. Hoor

On 19 September 2018, the EU Commission announced its decision in the McDonald's State Aid investigations. According to a press release1, the Commission has found that the non-taxation of certain McDonald's profits in Luxembourg did not constitute illegal State aid as it is in line with national tax laws and the Luxembourg-United States tax treaty.

The in-depth analysis of the Commission has shown that the reason for double non-taxation in this case is a mismatch between Luxembourg and US tax laws and not special treatment by Luxembourg. Therefore, Luxembourg did not break EU State Aid rules.

The decision of the EU Commission is consistent with the analysis of ATOZ that was detailed in a comprehensive publication at the time the State Aid investigations were launched.2

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