That's not what's happening though, there are reports by the parent company that the UK business is profitable, when it suits them to boost share prices, yet reports from in country that there has been a loss so they can minimise taxes.
I agree - it's possible that Starbucks UK is not pofitable, and that the parent company is, or vice versa. But reporting the same thing in different ways to different audiences seems fishy to me!
Good point - I guess if they are saying in their UK tax return that they aren't profitable and the US reports that they are making substantial profits in the UK then that is extremely fishy.
Aren't they just transfer pricing their profits out of the UK to Switzerland and the US?
I agree - it's possible that Starbucks UK is not pofitable, and that the parent company is, or vice versa. But reporting the same thing in different ways to different audiences seems fishy to me!