Luxembourg is turning into a new tax shelter in the heart of Europe. Loopholes in the tax law make Luxembourg attractive for companies keen to save lawfully on tax deductions. Global giant McDonald’s has been involved in the scandal of tax avoidance in the EU. The fast-food group was funneling royalties through a tiny Luxembourg-based subsidiary. According to a coalition of European and American trade unions and the charity War on Want, McDonald’s evaded paying taxes of over €1 billion since 2009 until 2013. “It is shameful to see that a multibillion-euro company that pays low wages to its workforce still seeks to avoid its responsibility to pay its fair share of much-needed taxes to finance public services we all rely on,” Jan Willem Goudriaan, General Secretary of the European Federation of Public Service Unions (EPSU), said in a statement. “We call on the European Commission, tax authorities of the European countries, and the new special committee on tax rulings to assess McDonald’s tax practice and take appropriate measures,” the official added. Some policy makers noted that incumbent European Commission President Jean-Claude Juncker, who had been Prime Minister of Luxembourg since 1998 until 2009, is one of inventors of tax loopholes. It means that the current EC authorities created generous conditions for tax breaks.
