Tag: Starbucks tax scandal

  • Starbucks upsets British people. “It is a mockery to the tax system”

    U.S. company Starbucks offered to pay 10 million pounds taxes in the UK over the next two years, in an attempt to regain customers who are outraged over reports that the company has not paid any tax over the past three years.

    Starbucks causes ire in Britain over tax announcement. (public domain)
    Starbucks causes ire in Britain over tax announcement. (public domain)
    Starbucks UK general manager, Kris Engskov, declared he was surprised by public’s discontent caused by the accounting arrangements used by the company. Engskov promised to make payments to the UK tax office for the upcoming two years, even if the coffee stores chain has not generated profit.

    Politicians and tax experts announced that the unilateral decision, which was not analyzed yet by the authorities, is a mockery to the tax system. The tax authorities also reiterated the position that tax is not something optional.

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    “This decision is a correct gesture. I heard this loud and clear from our customers,” said Engskov.

    Starbucks has avoided the tax payment in the past three years using a complex international payment trick within the group. Currently, Starbucks claims losses due to Dutch division where coffee beans are roasted and the one in Switzerland which imports these beans.