Euro MP Alex Mayer has slammed McDonald’s following the release of a new report into their tax practices by trade unions on both sides of the Atlantic today and warned against Britain becoming a go-to nation for companies seeking to minimise tax payments.
The report shows the steps the fast food giant has taken since a EU investigation was launched into the company’s super-sized £800 million tax avoidance.
This includes using subsidiaries in countries such as the Cayman Islands to make its operations "more opaque, inhibiting public scrutiny of the company's accounts," according to the report.
With Brexit on the horizon McDonald's has also moved its international tax base from Luxembourg to Britain.
Ms Mayer, who is Labour’s European Spokesperson on taxation and recently spoke in the Parliament about McDonalds said:
“Here’s a novel idea, rather than spend all this time and attention on finding creative ways to avoid tax, why don’t McDonalds concentrate on dealing with the very real problems their front line staff have like not being paid the Living Wage. It’s less than two weeks since the McStrike.
"It is now clear that rather than cleaning up their act, the company have instead shifted their profits to low-tax jurisdictions with even less transparency. I also find it deeply worrying that as part of their scheme they’ve decided to choose Britain as their tax HQ. I hope this isn’t a precursor of a Brexit race to the bottom on tax. Instead we need urgent reform of how multinational companies report and pay their taxes right across Europe, now and after Brexit. Big business must not be allowed to avoid paying their fair share.”