Retail EU says McDonald's, Luxembourg tax deal not illegal Updated : September 19, 2018 11:47 PM IST The Commission said McDonald's tax deal was in line with national tax laws and the Luxembourg-US double taxation treaty. The investigation had focused on McDonald's Luxembourg-based subsidiary Europe Franchising which receives royalties from franchisees in Europe, Ukraine and Russia. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.