Legislative, Regulatory & Legal

New York -- Starbucks Coffee Co. is considering changes to its tax practices in the U.K. in the wake of criticism from lawmakers, tax campaigners and the media, according to Reuters.

A Reuters examination of Starbucks accounts that was made public in October showed that the chain had reported 13 years of losses at its U.K. unit, even as it told investors the operation was profitable and among the best performing of its overseas markets, the report said.

Walmart moved its quarterly dividend payment up a few days so it would fall in 2012, but Costco took tax avoidance to a new level this week.

In anticipation that tax rates on dividends will rise next year as the federal government flounders for ways to raise revenue rather cut spending, a flurry of companies are paying one time dividends or adjusting payment dates. Walmart falls into the latter camp and said its 39.75 cent per share payment scheduled for January 2 would instead be paid on December 27.

Costco will pay a $7 a share special dividend before year end as it looks to return cash to shareholders in advance of what is expected to be a 2013 tax increase on dividend payments.

The total payout will amount to about $3 billion and is extraordinarily generous. Especially considering Costco’s net cash provided by operating activities for its fiscal year ended September 2, was only slightly more than $3 billion and cash, cash equivalents and short term investments totaled $4.854 billion.

Issaquah, Wash. -- Costco Wholesale Corp. on Wednesday said it will pay a special dividend worth some $3.0 billion to investors, sending cash to its shareholders ahead of a likely increase in the dividend tax. The chain also posted monthly same-store sales that beat analysts' expectations.

“Our strong balance sheet and favorable access to the credit markets allow us to provide shareholders with this dividend,” Costco CFO Richard Galanti said in a statement.

By Brendan W. Walsh, [email protected]

Washington, D.C. -- On Tuesday, a majority of named class plaintiffs filed a notice of appeal to challenge a ruling from the U.S. District Court for the Eastern District of New York granting preliminary approval to a proposed settlement of a long-standing antitrust class action filed by merchants against Visa, MasterCard and the largest banks. The merchant group will ask the U.S. Court of Appeals for the Second Circuit to deny preliminary approval due to the legal defects in the proposed settlement.
 

New York -- A Tuesday report by the Wall Street Journal said that activist hedge fund Starboard Value has added former Home Depot and Chrysler executive Robert Nardelli and ex-Staples vice chairman Joseph Vassalluzzo as advisors – part of Starboard’s plan to make sweeping changes at Office Depot Inc.

According to a Monday filing, Nardelli and Vassalluzzo will provide counsel toward improving Office Depot’s operations and strategies.

ARLINGTON, Va. — Retail Industry Leaders Association president Sandy Kennedy has responded to the White House report predicting the massive tax increases consumers could face if policymakers fail to avert the fiscal cliff.

The report was authored by the National Economic Council and the National Council of Economic Advisors.

WASHINGTON — The National Retail Federation has issued a statement from president and CEO Matthew Shay on the new White House report, “The Middle-Class Tax Cut’s Impact on Consumer Spending & Retailers.”

New York -- Mary L. Schapiro, the first woman to be permanent chairman of the U.S. Securities and Exchange Commission, announced she will step down on Dec. 14.

Schapiro was appointed head of the SEC by President Obama in 2008, one month after the Bernie Madoff scandal emerged, and she officially took office in 2009 at the peak of the financial crisis. Many experts say her four years were the toughest stretch any SEC chief has faced.