“Tax avoidance is the process of using legal means to reduce the amount of taxes owed based on the provisions enumerated in the tax law.” Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Starbucks argued to investors that the business had been profitable, even though the company had reported losses, just a few years ago Starbucks had reported sales of around £1.2 billion in the UK and these reports did not they showed neither profits nor income taxes. Starbucks released a statement saying how the business was becoming profitable in the UK and they were happy with how everything was going. Starbucks earnings and revenues rose about 11%, even as Starbucks was facing a day of action from anti-cuts protesters who had threatened the Starbucks brand and also the company's reputation for corporate social responsibility it was a disadvantage only because it states that companies involved in tax avoidance will put the company's reputation at risk, and in this case Starbucks had its reputation put at risk by anti-cut protesters. Starbucks' chief financial officer and company officials said so. “They want to be good taxpayers and pay their share of taxes; they do not have a tax code; they are obliged to comply “Starbucks thought it would be a good idea to shift UK operating profits to other tax jurisdictions that worked to their advantage; In 2012 Starbucks reported sales of around £400m in the UK alone and paid no corporation tax. Financial transactions were made to the Dutch company as royalty payments and they made payments with high interest rates only to make loans to other sectors of the business. The company that Starbucks trades with is based in Switzerland, they sold coffee to Starbucks stores in the UK who will then have it roasted by the company in the Netherlands, they reduced Starbucks' tax bill, claims that Starbucks had increased costs and also reduced revenue, reported that in the UK it was being purchased at a higher price than coffee from another entity Starbucks. Their various companies that they avoid paying taxes, another one of these big companies is Amazon. Amazon is in the crosshairs of tax avoidance. In 2016 Amazon managed to pay just £15 million in tax on a European turnover of £19. 5 billion. Amazon was not taxed on three-quarters of its profits due to illegal benefits it received from Luxembourg, then goes on to say that companies that evade taxes will help them outcompete their competitors, which will make it easier for them to secure control of the market market which will be an advantage for them. When you look at these companies you can see how they avoid taxes, what they do most is use legal loopholes, then transfer money abroad to other entities so they can pay less taxes and finally base their business in different countries that they can pay low taxes because they are multinational, taxes will be deducted by locating a branch in a country that is favorable with tax policies. These companies create prices and don't even refer to the market price. They basically make prices go up and down for their own purposes and benefits. Many large cooperative companies are avoiding paying taxes because this tax avoidance model shifts the tax burden. Governments do not have the courage to punish these large "untouchable" companies. Furthermore, these companies that avoid paying taxes still manage to use the services.