Starbucks Tax Planning

In 2015, the European Union accused Starbucks of violating State Aid rules and demanded that the company pay €20–30 million taxes to the Dutch government. Starbucks appealed the decision, and in 2019, the EU General Court ruled in favor of Starbucks, delivering a loss to the EU. This case revealed the intricate details of how Starbucks successfully avoided 90% of Dutch corporate income taxes, including their tax avoidance strategies, structural arrangements, and the role of the Dutch tax authority. In this article, we will thoroughly examine the coffee chain’s tax planning methods.