Coffee giant Starbucks is in a dispute with the taxman on the controversial
issue of transfer pricing.
In a note to its annual British accounts for the year ending September 27,
2009, Starbucks said: “The company is in discussion with HM Revenue &
Customs regarding its transfer pricing policy.”
The way goods and services are paid for between subsidiaries of multinational
companies has been a bone of contention for the taxman because of concerns the
deals are not done at “arms length”.
HMRC wants to preserve the UK’s tax take by making sure these transfers have
not been underpriced.
Starbucks said that if the taxman prevailed “the company believes it has
sufficient unrecognised deferred tax assets that it could utilise” to pay the
A Starbucks’ spokesman told
“We are in discussions with HM Revenue & Customs regarding Starbucks’
transfer pricing policy, which we believe to be reasonable.”
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year
Lord Howard Leigh of Hurley discusses the government’s initiatives to mitigate tax avoidance and evasion
Top 50+50: Demand for tax advisory services remains high, but fee pressure is expected in relation to compliance services
The demand for tax advisory services remains high and this looks to continue; but fee pressure is expected in relation to compliance services as the “Making Tax Digital” initiative is rolled out,
While some resistance to change is to be expected, the degree of controversy surrounding HMRC's Making Tax Digital proposals has surprised the government