National Tax Service conducts irregular tax audit on 'Starbucks'... verifying allegations of tax evasion

Starbucks, a coffee specialty store located on Insadong Street in Seoul.

[Asia Economy Reporter Kwangho Lee] The National Tax Service (NTS) is conducting a special tax investigation on Starbucks Coffee Korea.

According to related industries on the 4th, Starbucks Korea is undergoing an irregular tax audit by the NTS.

The NTS is reportedly focusing on suspicions of tax evasion through transfer pricing manipulation between Starbucks Korea and its overseas headquarters.

It is known that the NTS is conducting a broad investigation into offshore tax evasion suspicions involving not only Starbucks Korea but also multinational corporations.

Earlier this year, the NTS indicated that it would strengthen verification against tax avoidance by multinational corporations.

Meanwhile, Starbucks Korea opened its first store at Ewha Womans University in July 1999 and has since grown steadily, currently operating all 1,400 stores directly. Last year, it recorded sales of 1.8696 trillion KRW and a net profit of 132.8 billion KRW.