A new report reveals that Starbucks has funneled $1.3 billion in profits through a Swiss subsidiary, Starbucks Coffee Trading Company (SCTC), to avoid higher taxes in other countries. While the company claims to focus on ethical practices in coffee sourcing, the use of this tax haven raises questions about its commitment to social responsibility. The report suggests that since 2015, SCTC has been crucial in reducing Starbucks' overall tax burden, although there is no evidence of illegality in these maneuvers. The findings challenge the brand's image as a socially conscious corporation.
Starbucks' Swiss subsidiary, responsible for sourcing unroasted coffee, helped shift $1.3 billion in profits away from higher-tax countries over a decade.
Despite being known for its social responsibility image, Starbucks utilizes tax loopholes through its Swiss subsidiary, raising contrasts in public perception.
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