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Tax landscapes shift for multinationals
First published in the Financial Director, 24 October 2014
Shifting a European tax base to a nation with a higher rate may also be necessary, as Starbucks did following the hefty criticism of its tax practices. The move to the UK would see it pay more tax in what the company described as its fastest-growing European market. Following the relocation, Starbucks expects to open a further 100 shops, creating 1,000 new jobs. Senior executives, meanwhile, have transferred to its head office in Chiswick.
Bowing to such pressure, “legitimises the aggressiveness we have already seen from tax authorities towards taxpayers, particularly in areas such as transfer pricing”, says Frédéric Donnedieu, and as such businesses should prepare for this scenario.
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