Large corporate companies are always looking for ways to reduce costs. Whether it is reducing wages or simply shutting down facilities, firms are always aiming for the goal of maximizing profits. This was the same case for the three large multinational companies that are operating in Europe.
Starbucks, Google, and Amazon have recently been accused of evading taxes by outsourcing their revenue elsewhere within Europe. Even though they have not committed any crime by exposing the tax loophole, UK lawmakers are angry at their actions. This raises a question that one should be concerned about. It’s true that they aren’t breaking any laws by being smart. However, is it ethical for them to do so; especially with the Europe crisis now looming over the continent? Take Starbucks as an example. They’ve earned 3.1 billion pounds over the last 13 years yet they only paid 8.6 million pound in taxes. That’s less than 4% of taxes paid yearly compared to an average Vancouver citizen which pays 12% in taxes! It’s a no brainer that the UK lawmakers are angry at the corporate’s actions. Yes it’s true that thinking smart can benefit you in the long run but are the actions ethical? Is the money really worth saving if it can ruin other people’s lives?
Work Cited
“Taxing Questions: British Lawmakers to Grill Google, Amazon and Starbucks on Tax Avoidance.” Www.theprovince.com. The Associated Press, 12 Nov. 2012. Web. 12 Nov. 2012. <http://www.theprovince.com/business/British lawmakers grill Google Amazon Starbucks avoidance/7535869/story.html>.
Thomson, Ainsley. “U.K. Lawmakers Grill Google, Amazon, Starbucks Executives Over Tax Avoidance.” Http://online.wsj.com. The Wall Street Journal, 12 Nov. 2012. Web. 12 Nov. 2012. <http://online.wsj.com/article/BT-CO-20121112-710750.html?mod=WSJ_qtoverview_wsjlatest>.
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