PARIS, Jan. 22 (UPI) -- McDonald's Corp. in France allegedly uses out-of-the-country subsidiaries to cut its tax bill on profits to under 2 percent, a French magazine reported.
The weekly magazine L'Express said hundreds of millions of euros were transferred from the company's franchise businesses in France to subsidiaries in Luxembourg and Switzerland.
Radio France International reported Wednesday that the tax evasion allegations, which the company denies, lowers the company's tax rate on profits from 33.3 percent to 1.85 percent.
McDonald's has 314 franchise outlets in France out of a total of 1,300 outlets in the country.
McDonald's acknowledged French tax authorities visited the company's headquarters in France last October, but they characterized the event as a routine inspection.
The French finance ministry declined to comment on the allegations, Radio France International reported.