Tax Planning in Multinational Corporations

Tax planning is a crucial strategy that management can display in order to increase the net profit of the companies by reducing tax expenses. This is particularly significant for multinational corporations (MNCs) due to their possibility to take advantage of the different tax rates existing in the various countries where they operate.

Even though most of the utilized practices were legal, they were increasingly discussed and accused of being immoral. Governments were urged by the public to take action. As a result, MNCs may possibly change their concept of tax planning and comportment.

In the context of this research project (2017), the case of Starbucks corporation was used to analyze to which extent the utilization of aggressive tax planning strategies has decreased since the immorality of BEPS was stated by the “House of Commons Public Accounts Committee” in the UK. To this end, the financial statements of the years 2010 to 2015 were analyzed for four companies of the Starbucks group.

The results will be published as UASM Discussion Paper in 2018.

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