Question

For “Starbucks U.K. Tax Scandal”

Answer those two

1. How it could have been avoided

2. Recommendations

Answer 1

1. Starbucks United Kingdom Tax scandal could have been avoided through-

A. Proper management of books of accounts which will be free from window dressing in order to exploit the discrepancies in tax regulations.

B. It could have maintain proper pricing policies in order to maintaining growth and profits in its operational activities so that it could have reported higher profits and it could have directly paid the taxes because the company has just paid 4.5 million euros of taxes since opening in United Kingdom.

C. it should had managed its operational activities better in order to report lesser expenses because it has a very high amount of turnover but the net profit is very lower so it would had maintained proper remuneration policies.

D. Integral management would have been very effective in managing tax scandal and a corporate responsibility would have been properly advocated so that no misappropriation of accounts would have been done.

2. I will be recommending that the proper ethical management regulation should be adopted because company have identified various kinds of discrepancies in the tax regulations so they are exploiting in order to maximize their profits and reporting letter of the prophets to avoid the overall access so Starbucks is generally trying to benefit through its multinational presence and it is trying to set off the loss of one country against gain of the another country so they are trying to consolidate the loss of subsidiary in United Kingdom so it can be said that Starbucks is highly manipulative in maintenance of their books of account so they can be adopting proper organisational policy in order to maintain their profits through maintenance of proper expenses and maintenance of proper efficiency in use of the assets and integral ethics should be practiced in the organisation.