Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Will Starbucks Succeed in Securing New U.S. Tax Breaks?
Author: Scarinci Hollenbeck, LLC
Date: June 14, 2013
Key Contacts
Back
Starbucks Corporation and roughly a dozen other large conglomerates are taking individual appeals to lawmakers in the hopes of overhauling current tax law policies and expanding certain tax breaks, a new analysis reveals.
The Financial Times reports that the popular coffee chain, which maintains a global presence, reached out to lawmakers who are considering making changes to the U.S. Tax Code. The corporation proposed forgoing certain U.S. tax breaks, such as the domestic manufacturing deduction and accelerated depreciation for business investments, so long as its revenues could be used to lower the corporate tax rate. The company also requested that taxes on royalty revenues be deferred until the money is brought back into the United States. Under the current laws, deferral is permitted only for international royalty payments coming in from unrelated franchisees, but not related parties associated with the company, the Times explains.
“Reform that provides consistent treatment of active royalties received from both unrelated parties and related parties … would be good tax policy, would increase Starbucks’ ability to compete in markets outside the US and would facilitate further growth of our company,” Brian Ugai, Starbucks vice president for tax and customs, tells the Financial Times.
While it is unclear how lawmakers will treat the proposals, the Huffington Post notes that Starbucks is not the only large company lobbying for more favorable tax treatment from the Internal Revenue Service.
Other large conglomerates – including Apple, Microsoft, Honeywell, and Walt Disney – are also appealing to lawmakers and seeking out substantial tax breaks without facing the risk of noncompliance allegations. For example, Disney agreed to give up its rights to certain tax breaks if lawmakers would consider expanding certain tax benefits for new intellectual property in the U.S.
Although lawmakers are discussing several solutions for simplifying the tax code for corporations and helping the comply with U.S. laws, no concrete resolutions have been reached.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.