TaxCorporate TaxStarbucks at loggerheads with the taxman

Starbucks at loggerheads with the taxman

Transfer pricing issues sees Starbucks in stand-off with HM Revenue & Customs

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
additional liabilities.

A Starbucks’ spokesman told
thisismoney.co.uk:
“We are in discussions with HM Revenue & Customs regarding Starbucks’
transfer pricing policy, which we believe to be reasonable.”

Further reading:

Cross-border
tax probes set to rise

Related Articles

‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

5m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

5m Emma Smith, Managing Editor
Spring Budget 2017: Making Tax Digital

Business Regulation Spring Budget 2017: Making Tax Digital

9m Shereen Ali, Deputy Editor
Tax fraud loses HMRC £16bn

Corporate Tax Tax fraud loses HMRC £16bn

10m Emma Smith, Managing Editor
HMRC nets £2.6bn in corporate tax from big businesses

Corporate Tax HMRC nets £2.6bn in corporate tax from big businesses

10m Accountancy Age editorial
Tax crackdown brings in £468m for HMRC

Corporate Tax Tax crackdown brings in £468m for HMRC

11m Accountancy Age editorial
Treasury Select Committee report released on Making Tax Digital

Accounting Standards Treasury Select Committee report released on Making Tax Digital

11m Stephanie Wix, Writer