Smitten By Ideas: Starbucks - A Licence to Lose Money

Source: Starbucks 

Although this post is more finance related, I can't help but to share this special report from Reuters, which uncovered some interesting facts about Starbucks’s creative accounting methods.

Over the past 3 years, Starbucks's UK subsidiary has reported no profit and paid no income tax despite registering £1.2 billion in sales. As guided by the reporter, tactics used by Starbucks are perfectly legal and are being practiced by multinationals all over the world.

Under the current UK tax regime, companies such as Starbucks are allowed to pay royalties to subsidiaries where country tax are much lower (i.e. Switzerland - as low as 2%). In addition, Her Majesty’s Revenue and Custom (HMRC) also allows companies to deduct intellectual property fees if firms can show that the charges were made at “arm’s length”.

More interestingly, transfer pricing seems to be a popular way for companies to minimize tax bill, by allocating some funds generated in the UK to other subsidiaries in the supply chain, where corporate tax are much lower.

Another way to cut taxes is through inter-company loans, where parent company will charge a high interest rate on its inter-company loan, benefiting both companies in term of taxable income. 

For the full post on How Starbucks avoids UK taxes, click HERE.

Happy Reading! =)

Svaneke, Sea Glass Studio and Osterlars Round Church Tour @ Bornholm, Denmark

First Stop: We started our tour at Svaneke, a small town located on the east coast of Bornholm that has a tiny population of just under 1,100.

Despite the small population, Svanake is a very popular tourist spot thanks to its quaint red-roofed and half timbered houses. 

A stroll down the port might evoke the idea of making Svaneke your second home.

Second Stop: The Baltic Sea Glass is a glass studio where artist Maibritt Jonsson and Pete Hunner develop unique glass art, inspired by the daily things in life such as plants, wildlife and landscapes. 

Mini volumetric flasks

Corn inspired glass art

Next stop: Round Church of Osterlars - Build in 1160, Osterlars Round Church is the largest round church in Denmark. It is one of the main attraction on the island with more than 120,000 visitors a year.

The central column of the church is decorated with biblical scenes from the Annunciation through to the Passion, ending with Day of Judgement where Jesus judges mankind. 

A view from the top - This church is often being linked to the Knight Templars, who were warrior monks that lived a modest life during normal times. But in wars, they were feared by the Muslims, whom they fought with in the Holy Land. It is believed that Bornholm was used as a base for a crusade to the Baltic countries. 

Gudhjem Rogeri @ Bornholm, Denmark (Smoked Herring)

Bornholm is a tiny fishing port located 200km east of Copenhagen. It is officially the sunniest part of Denmark, blessed with picturesque streets, sandy beaches and glorious food. 

After our visit to the Baltic Sea Glass and Round Church, we travelled back to the town center where we were treated to a sampling of smoked mackerel before returning to our ship.

Built in 1910, Gudhjem Rogeri is the oldest smokery in Bornholm. Here you will find herrings hanging over an open alder wood fire, smoked for a good three to four hours. 

 The golden smoked herring was served with rye bread, chopped radish, onions and chives, along with some coarse salt and butter. The texture of the herring was firm and crisp, packed with smokey and delicate flavors.

We concluded that the herrings were well worth sinking our teeth into, despite all the tiny fish bones that occasionally find its way into our mouth. 

VERDICT: TOTALLY SMITTEN

Gudhjem Rogeri

Address: Ejnar Mikkelsensvej 9, Gudhjem, Bornholm 3760, Denmark. 

Phone: +45 56485708

Website

Ramen Kimama @ Birger Jarlsgatan, Stockholm, Sweden

I'll be lying if I told you that we did not crave for any oriental food during our trip to Scandinavia. In fact, all my family members started petitioning to have Asian food on our second day in Stockholm.

Yaki Soba (SEK 140) - My uncle was smitten by the large batch of Yaki Soba, studded with cabbages, onions, carrots and bite sized pork. This was merely the beginning of a wonderful meal at Raman Kimama.

Nabeyaki Udon (SEK 145) - The Nabeyaki Udon was heart warming and delicious, thanks to the chewy udon noodles, vegetables, poached egg, tempura shrimp, kamaboka (fish cake), bean curd and chicken. My auntie had no trouble slurping it up - all by herself! 

Shio Ramen (SEK 115) - There may be many form of ramen soup, but the foundation of a good soup remains the same. The key is to pull out as much flavor as possible from the boned-up stock for a good long time. This Shio Ramen was a testament to the classic bone-based broth - Delicate and Rich! Dad was chirpy with his choice. 

Miso Ramen (SEK 115) - The miso fortified pork bones soup was dominated with shredded pork, bean sprouts, onions and scallions. Needless to say, the bouncy noodles and ingredients built around the flavored soup effortlessly.  It was indeed an excellent choice for myself. 

Tom Yum Ramen (SEK 160) - Mum took an alternative route, where she beelined to the exotic Tom Yum Ramen, treating herself with lip smacking spicy soup filled fresh seafood and vegetables. The result of sipping hot soup during cold weather was sensational.

Gyoza - The covered pan fried gyoza hosted the filling well, helping to end our meal and paused our cravings for the next few days.  

VERDICT: TOTALLY SMITTEN

Smitten Dishes:

Miso Ramen 

Shio Ramen

Tom Yum Ramen

Ramen Kimama

Address: Birger Jarlsgatan 93, Stockholm, Sweden.

Telephone: 08-155539

Website

Sushi Etiquette : The Correct Way of Eating Sushi

I love sushi. Perhaps is the beautiful marriage of fresh fish and grainy goodness that keeps me coming back for more. Being an ardent sushi eater, I was surprised to find out that I have been breaking some of the important sushi eating rules. 

Did you know that you are not supposed to mix wasabi with soy sauce? (Hmmm...I wonder who came out with this idea of mixing it together). Also, never ever rub your chopsticks against each other to remove splinters. It is extremely rude. (Really?? Not even for safety reason?).

Daily Infographic