France 'to go all the way' to make multinationals pay their taxes

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France will "Go all the way" to ensure multinationals operating on its soil pay their taxes while more cases could follow after Google and McDonald's were targeted in tax raids, the finance minister, Michel Sapin, has said.

Tax investigators searched McDonald's French headquarters on 18 May. The raids built on work started by tax authorities three to four years ago, when they transferred tax data to judicial authorities who look into possible crimes, Sapin said.

Google, McDonald's and other multinational firms such as Starbucks are under increasing pressure in Europe from public opinion and governments angry at the way businesses exploit their international presence to minimise the tax they pay.

Google said it is fully compliant with French law while McDonald's declined to comment on the search, referring to past comments that it is proud to be one of the biggest taxpayers in France.

The police raid was part of a separate judicial investigation into aggravated tax fraud and the organised laundering of the proceeds of tax fraud.

It said tax officials had accused the US burger chain of using a Luxembourg-based entity, McD Europe Franchising, to shift profits to lower-tax jurisdictions by billing the French division excessively for use of the company brand and other services.

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