(MENAFN) International fast-food giant McDonald's has been accused of avoiding almost USD395.4 million in corporate tax by shifting profits from Australia to Singapore, Xinhua reported.
after analyzing McDonald's Australia's financial accounts, it was observed that it has been taking advantage of current international loopholes that allow companies to pay low tax rates on royalty income.
"These strategies may have allowed it to avoid up to USD1.8 billion in tax, including USD1.12 billion across Europe and USD393.03 million in Australia," Fairfax Media reported.
Globally, McDonald's charges an effective rate of 5 percent of sales via royalty payments; however, McDonald's Australia reported paying USD297.9 million in "service fees" to McDonald's Asia-Pacific.
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