How Starbucks avoids paying taxes in the UK

Starbucks has been telling investors its UK business is profitable, even as it consistently reported losses to tax collectors there.

"Over the past three years, Starbucks has reported no profit, and paid no income tax, on sales of 1.2 billion pounds in the UK" -- while, at the same time, telling investors that it's profitable there, reports Reuters.

"This apparent contradiction arises from tax avoidance, and sheds light on perfectly legal tactics used by multinationals the world over. Starbucks stands out because it has told investors one thing and the taxman another."

In 2008, according to Reuters, Starbucks reported a 26 million pounds loss in the UK but CEO Howard Schultz told analysts the UK business was so successful that he planned to take the lessons he had learned there and apply them to operations in the United States.

* How Starbucks avoids paying taxes in the UK
* Watch a video report on this story, including footage of a SBUX exec ducking a question

Comments

[Ashley Cooper]

Think this news will hurt uk business big time. At a time of austerity big companies need to pull their weight not avoid responsibilities. I left SBUX 3 years ago and started my own business from my redundancy and it seems I have paid more tax! Howard should hang his head in shame!

[Herman]

Starbucks did not enact the tax laws.

[James Connolly]

No instead it benefited from the programs and infrastructure built with taxes without paying for it.

Basically it's theft from everyone.

[Conservative Manager]

Haha, The chickens come home to roost. Starbuck's panders to those who lean left, aaannnnddd then "avoid paying taxes".

Can the company and at 80% of it's employees stop trying to be so utterly self righteous and at least entertain the fact that STARBUCKS IS A BUSINESS. We exist to make money for our shareholders and they hoodwink you into thinking it's about "your neighborhood" and the Red campagin (which has been shown to be a slush fund for African warlords and dictators).

Grow up people and come out from under your rock!