Investigation Name:
Investigation into McDonald's Corporation's Activities in Brazil
Trend:
None
Type of investigation:
Internal
Whistleblower:
Unknown
Summary
McDonald’s Corporation primarily franchises and operates McDonald’s restaurants in the food service industry. Incorporated in Delaware and headquartered in Illinois, its common stock is traded on the NYSE.
McDonald’s disclosed in its SEC filings that on May 31, 2005, a public civil action was filed in Brazil by the Federal Attorney’s Office for the Federal District against, among others, McDonald’s Comércio de Alimentos Ltda (McCal), a wholly-owned subsidiary of McDonald’s, and three of its former employees. The complaint alleges that McCal and its former employees made an improper payment to obtain tax guidance relating to the deductibility of franchisee royalty payments in Brazil.
McDonald’s commenced an investigation of the allegations.
McDonald’s reported the allegations to both the SEC and DOJ.
McDonald’s February 27, 2006 10-K filing was the last disclosure regarding the investigation. There is no evidence that either the SEC or the DOJ began an investigation into the matter. The investigation is likely complete.
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