Tax Analysis and Profit Shifting Starbucks Corporation

Yuliana Theresia, Danny Septriadi

2018

Abstract

This research is an analysis of tax avoidance case and profit shifting Starbucks Corporation. The selected case analyzed its tax avoidance structure and analyzed whether current tax measures in Indonesia could prevent tax avoidance structure such as that of Starbucks Corporation. This research aims to analyze the structure of tax avoidance and transfer pricing conducted by Starbucks Corporation and analyze what regulations can be applied by Indonesian tax authorities if such cases occur in Indonesia. This research is a qualitative research with literature study approach. The results of the study found that Starbucks Corporation made profit shifting by marking up the price of coffee, thin capitalization through high lending rates between group companies, royalty fees and from this research resulted the conclusion that the existing tax policies and policies in Indonesia enough to overcome the structure of tax evasion with a scheme like the one done by Starbucks Corporation but it is necessary to add rules governing rate valuation royalty.

Paper Citation

in Harvard Style

Theresia Y. and Septriadi D. (2018). Tax Analysis and Profit Shifting Starbucks Corporation.In Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study - Volume 1: JCAE Symposium, ISBN 978-989-758-339-1, pages 867-875. DOI: 10.5220/0007022308670875

in Bibtex Style

@conference{jcae symposium18,
author={Yuliana Theresia and Danny Septriadi},
title={Tax Analysis and Profit Shifting Starbucks Corporation},
booktitle={Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study - Volume 1: JCAE Symposium,},
year={2018},
pages={867-875},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007022308670875},
isbn={978-989-758-339-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study - Volume 1: JCAE Symposium,
TI - Tax Analysis and Profit Shifting Starbucks Corporation
SN - 978-989-758-339-1
AU - Theresia Y.
AU - Septriadi D.
PY - 2018
SP - 867
EP - 875
DO - 10.5220/0007022308670875