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
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
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.