Big multinational firms have found this damp corner of Europe a good place to magic away profits that are then taxed at one of the world’s lowest rates https://t.co/9r05Zvpk3j ...

Tax Strategy - Big multinational firms are using a specific European region to minimize their tax burden [1] - These firms are shifting profits to this region to take advantage of some of the world's lowest tax rates [1]

Big multinational firms have found this damp corner of Europe a good place to magic away profits that are then taxed at one of the world’s lowest rates https://t.co/HrchirwKx0 ...

Big multinational firms have found this damp corner of Europe a good place to magic away profits that are then taxed at one of the world’s lowest rates https://t.co/jwhIHSmiwx ...

Big multinational firms have found this damp corner of Europe a good place to magic away profits that are then taxed at one of the world’s lowest rates https://t.co/FgABRCxmVW ...

A large range of American companies stow their intellectual property in Ireland. To illustrate this, let's pretend to set up our own multinational tech firm, Big Comp. Big Comp's assets are entirely controlled by a holding company that's based in the US. It's called Big Comp Holding Company, and it has a subsidiary, Big Comp International.The subsidiary is based in Ireland, where tax rates are relatively low. Big Comp is working on a new smart device. The Irish subsidiary buys licenses for its hardware, sof ...

Here's how much money you'd get to keep if you made a million around the world. In California, after federal and state taxes, you'd take home about $530,000. In Germany, you'd be left with roughly $550,000.In Australia, it's not much better at about $560,000. In the UK, you'd get to keep around $610,000. And in Dubai, if you make $1 million, you get to keep the full million. ...

Over the past three decades. US corporations set up shop in Ireland. In 1996, about 3% of US businesses with global operations had Irish affiliates.By 2022, 25% of them opened Irish businesses. You really cannot talk about US multinationals in the last few decades without talking about Ireland. Big US corporations, that's technology companies like Apple, Microsoft or big pharmaceutical companies like Pfizer.Their tax strategies for, for many decades at least, were built around the role of Ireland. Something ...

Core Insights - A report indicates that Starbucks Coffee Trading Company (SCTC), a subsidiary in Switzerland, has significantly influenced Starbucks' tax payments over the past decade, helping to shift approximately $1.3 billion in profits to lower-tax jurisdictions since 2015 [2][10] - The report highlights a contrast between Starbucks' public image of social responsibility and its use of tax strategies that exploit loopholes [3][10] Tax Strategy and Financial Practices - SCTC is responsible for sourcing unroasted coffee and has been used to book the costs of these beans, which do not physically pass through Switzerland, allowing Starbucks to mark up prices significantly [4][5] - The markup on coffee beans increased from about 3% between 2005 and 2010 to 18% between 2011 and 2014, contributing to the profit shift [4] - The average tax rate for US companies in Switzerland is reported to be 3.9%, compared to the US corporate tax rate of 21%, indicating a substantial tax advantage [6] Dividends and Profit Allocation - SCTC has reportedly paid between $125 million and $150 million in dividends annually to another subsidiary, Starbucks Coffee EMEA B.V., with these payments not being taxed upon leaving Switzerland or entering the Netherlands [7] - The report analyzed financial filings of Starbucks subsidiaries across Europe to trace profits booked at SCTC [7] Company Response and Industry Context - Starbucks responded to the report by asserting that it pays appropriate taxes in all jurisdictions and that the report misrepresents its business model [8] - The use of offshore tax strategies is not unique to Starbucks, as many large companies utilize tax havens to minimize tax obligations, a practice that has been ongoing for decades [11][12]