PARIS, January 23 (RAPSI) – McDonald’s France claims it has not avoided paying taxes on around EUR2.2 billion ($2.98 billion) of revenue over the past five years, local media outlets state.

The French media have reported that the Finance Ministry suspects McDonald’s of diverting fees paid by its 300 franchisees to units in Luxembourg and Switzerland, avoiding some corporate taxes in France, where the rates are higher.

“McDonald’s pays all of its taxes in France on the totality of its revenue, in line with current legislation,” said Alexis Bourdon, McDonald’s France vice president in charge of finance.

McDonald’s pays significant taxes in France through the holding companies that own real estate and restaurants in the country. Holding company MCD France paid nearly EUR89 million in corporate income tax in 2012, at least in part for its subsidiary McDonald's France, which posted a profit of EUR286 million, according to corporate filings.

Overall, McDonald's France, which owns part or all of many restaurants in the country, brought in EUR850 million in revenue.

McDonald’s was established in 1940 as a barbecue restaurant operated by brothers Dic and Mac McDonald. They opened their first restaurant, which was a typical drive-in, in San Bernardino, California. In 1948 they introduced the Speedee Service System, which furthered the principles of the modern fast-food industry.