Posted tagged ‘foreign tax credits’

By Appeasing the United Kingdom, Starbucks May Have Relocated Its Tax Problems Into The United States

December 12, 2012

By:  Dustin Covello

As one of many U.S. multinationals that reportedly implemented the Double Irish international tax structure, Starbucks has reportedly paid a U.K. tax rate of 2.8 percent over the last decade.  Not satisfied with this levy, last month the British Parliament called Starbucks and other U.S. multinationals before the body to discuss the structure.  Last week, in response to Parliament’s pressure, Starbucks announced that it would voluntarily forgo U.K. deductions to ensure it pays £10 million ($16 million) in tax during 2013 and 2014.  It remains to be seen whether Starbucks’ announcement will placate Parliament.  By making this gesture, however, has Starbucks caused a U.S. tax problem?  (more…)

%d bloggers like this: