Archive for the ‘Accountancy Age’ Category

Starbucks at loggerheads with the taxman

August 9th, 2010 Comments off

Starbucks is getting some press today as a company that is having to justify transfer pricing.  As I’ve mentioned several times on this blog as well as in class, the tax authorities around the globe are increasingly starved for revenue and this type of thing, founded or not, is sure to continue.  There is just too much wiggle room for companies to use transfer pricing methods to escape taxes and in so many cases without an external market it can be impossible to defend a particular price regardless of how vaild/realistic it might be.

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.”

Read more at:

Starbucks at loggerheads with the taxman – Accountancy Age.

Transfer Pricing Audits on the Rise

April 15th, 2009 Comments off

Here are a trio of related pieces about the increase in governmental audits of multinational companies related to transfer pricing practices.  While this may be bad news to the companies that have to deal with more aggressive auditors and/or the resultant fines/penalties, it could be great news for the accounting profession and any of you that want to make a career of these kinds of things.