Tuesday, October 16, 2012

Starbucks doesn't pay a bean in UK tax

Tuesday 16th October: Starbucks says its mission is "about ethically sourcing the finest coffee beans".  It obviously does not include ethically paying taxes in countries it make huge revenues.

Starbucks joins other famous brands like Facebook, Google - http://www.blogger.com/blogger.g?blogID=2221107729551960243#editor/target=post;postID=4189228540266587462 and many other rich high-tech companies who avoid taxes by exploiting different tax regimes and other "legal" but highly questionable financial devices to avoid paying their fair share of tax.

Update Wednesday 17th October: Apparently many UK consumers of Starbucks are going to boycott them in favour of their competitors. If enough do it, Starbucks may change its tax-avoiding ways.  Now to get users of Google, Apple and Faceboo to do the same!

BTW - I don't see why the UK government cannot pass a law that makes all companies that do more than - say - £100m revenue in a year pay a minimum of - say - 1% of that revenue in tax. If the calculated tax is higher then that is what is due. But even if the company is making a loss, it will still be liable for that minimum tax.


Starbucks doesn't pay a bean in UK tax: Coffee chain avoids big bills by declaring loss after loss

  • Since coming to the UK in 1998, the coffee group has opened 735 outlets
  • Taken more than £3billion in sales but paid just £8.6million in corporation tax
  • In the last three years it's paid no UK tax at all despite £1.2billion in sales
  • Critics brand practices 'disgraceful' and call for 'real and radical tax reform'
Read more: http://www.dailymail.co.uk/news/article-2218192/Starbucks-shortchanges-British-taxypayers-paying-just-8-6m-tax-past-14-years.html#ixzz29SGxRqf0

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