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Starbucks ‘reviewing tax affairs’ over ‘immoral’ practices in UK

Last Updated: Monday, December 3, 2012 - 18:57

London: Starbucks has said that it is reviewing its tax affairs after a public backlash over how little tax it pays in Britain.

The coffee chain reportedly paid just 8.6 million pounds in corporation tax in 14 years of trading in Britain.

It recently revealed it paid no corporation tax for the past three years, despite sales of 1.2 billion pounds in the UK.

According to Sky News, the Seattle-based firm has now revealed it is in talks with Her Majesty''s Revenue and Customs (HMRC) and the Treasury over its tax affairs as part of a bid to "build public trust".

“Starbucks is committed to the UK for the long term and we have invested more than 200 million pounds in our UK business over the past 12 years,” a statement by the firm said.

“Starbucks has complied with all the tax laws in this country but has regretfully not been as profitable as we would have liked,” it said.

"We have listened to feedback from our customers and employees, and understand that to maintain and further build public trust we need to do more. As part of this we are looking at our tax approach in the UK,” it added.

The firm is one of many multinationals to have the amount of tax they pay in the UK put under the spotlight.

Last month, the Commons Public Accounts Committee (PAC), which is charged with monitoring government financial affairs, questioned senior executives from Google and Amazon on why they pay so little tax in the UK while racking up millions of pounds'' worth of sales.

ANI

First Published: Monday, December 3, 2012 - 18:57
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