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Starbucks likely avoided taxes on $1.3 billion in profit using a Swiss subsidiary, a new report finds

1. Starbucks saved taxes using a Swiss subsidiary to book $1.3 billion in profits. 2. The strategy matches trends among companies utilizing tax havens for savings. 3. Starbucks maintains its image of social responsibility despite tax strategies. 4. SCTC charged higher prices on green coffee beans with higher profit margins. 5. US firms average 3.9% tax in Switzerland compared to the 21% US rate.

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FAQ

Why Neutral?

The report indicates legal tax strategies but may lead to reputational issues, affecting stock perceptions. However, this is common industry practice, limiting impact.

How important is it?

The article sheds light on Starbucks’ financial tactics, which could influence investor perception and regulatory scrutiny.

Why Long Term?

Long-term impacts arise from reputational effects and potential regulatory changes, but immediate financial implications seem minimal.

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