Starbucks set to pay more tax in UK

Romsey Advertiser: Starbucks has come under fire in the past over the amount of tax it pays Starbucks has come under fire in the past over the amount of tax it pays

Starbucks has said it will pay more tax in the UK as it moves its European headquarters here from the Netherlands following a row over avoidance.

The coffee shop chain was hit by a customer boycott two years ago in protest over its tax payments.

It will relocate its regional head office from Amsterdam to London by the end of the year.

A "modest" number of senior executives will move to London so the firm will be "better able to oversee the UK market", Starbucks said in a statement.

The regional offices of its Middle East and Africa businesses will also be moved to the UK capital.

The company said: " Today, our largest and fastest-growing European market is the UK. As the coffee industry has grown, the UK and London specifically has become one of the most competitive coffee markets in the world.

" In the UK alone, we plan to open over 100 retail stores across the country this year, creating 1,000 new, permanent jobs. We expect continued growth in other European markets as well. This move will mean we pay more tax in the UK."

Kris Engskov, Starbucks' president of Europe, the Middle East and Asia, said: "Closer proximity to our biggest market will be critical to our success as we grow our business across Europe and the globe."

Colin Stanbridge, chief executive of the London Chamber of Commerce and Industry, said: "This very positive move by Starbucks greatly reinforces London as a key global centre for business and a highly desirable location for firms to base their operations.

"Creating the right environment for businesses to flourish is essential to London competing at an international level and we are delighted that Starbucks has given the capital a ringing endorsement."

Concern over the tax paid by the likes of Starbucks, Google and Amazon has drawn political attention to the question of how multibillion-pound corporations structure their tax affairs.

The company told MPs in 2012 it had made a loss for 14 of the 15 years it had operated in the UK, achieving just a small profit in 2006.

In a fiery showdown with the Commons Public Accounts Committee, Starbucks insisted it was ''an extremely high taxpayer'' globally and acted ''to an ethical'' as well as a legal standard, despite declaring losses on its UK operation.

Last year the firm paid corporation tax in the UK for the first time since 2008, as it committed to pay £20 million over two years.

Comments (7)

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9:41am Wed 16 Apr 14

beach1e says...

I still don't understand why people buy the overpriced muck that Starbucks serves up.It just goes to show that if you can pay a couple of quid for hot water ,some air infused milk and a bit of flavouring there is no financial crisis.
I still don't understand why people buy the overpriced muck that Starbucks serves up.It just goes to show that if you can pay a couple of quid for hot water ,some air infused milk and a bit of flavouring there is no financial crisis. beach1e
  • Score: 11

10:11am Wed 16 Apr 14

MSG says...

Just as the UK looks set to leave the EU when UKIP win the euro elections and the pressure mounts for us to have an in/our referendum on the EU , a major employer decides its better off in future by relocating to the UK. So much for the scare stories of how Britain would suffer if we pulled out of the EU.

More reason to vote UKIP !
Just as the UK looks set to leave the EU when UKIP win the euro elections and the pressure mounts for us to have an in/our referendum on the EU , a major employer decides its better off in future by relocating to the UK. So much for the scare stories of how Britain would suffer if we pulled out of the EU. More reason to vote UKIP ! MSG
  • Score: 4

10:32am Wed 16 Apr 14

welshmen says...

The writing's on the Wall, Ukip to WIN, UK out of European Scamers Market....
The writing's on the Wall, Ukip to WIN, UK out of European Scamers Market.... welshmen
  • Score: 2

1:18pm Wed 16 Apr 14

elvisimo says...

MSG wrote:
Just as the UK looks set to leave the EU when UKIP win the euro elections and the pressure mounts for us to have an in/our referendum on the EU , a major employer decides its better off in future by relocating to the UK. So much for the scare stories of how Britain would suffer if we pulled out of the EU.

More reason to vote UKIP !
on what basis - please tell me which of their hilarious policies you agree with. Your view perhaps of the defence budget they propose or maybe their tax policies. What do you think of their proposed "banned" list of literature and documentaries and the 2 million cut in public sector jobs?
[quote][p][bold]MSG[/bold] wrote: Just as the UK looks set to leave the EU when UKIP win the euro elections and the pressure mounts for us to have an in/our referendum on the EU , a major employer decides its better off in future by relocating to the UK. So much for the scare stories of how Britain would suffer if we pulled out of the EU. More reason to vote UKIP ![/p][/quote]on what basis - please tell me which of their hilarious policies you agree with. Your view perhaps of the defence budget they propose or maybe their tax policies. What do you think of their proposed "banned" list of literature and documentaries and the 2 million cut in public sector jobs? elvisimo
  • Score: -5

1:44pm Wed 16 Apr 14

G_Whiz says...

Too late Starbucks, your arrogant greed and lies will stay in our memory for ever.

I'll stick with Costa. It's British and it pay's all it's taxes!
Too late Starbucks, your arrogant greed and lies will stay in our memory for ever. I'll stick with Costa. It's British and it pay's all it's taxes! G_Whiz
  • Score: 3

3:27pm Wed 16 Apr 14

MilkandTwo says...

elvisimo wrote:
MSG wrote:
Just as the UK looks set to leave the EU when UKIP win the euro elections and the pressure mounts for us to have an in/our referendum on the EU , a major employer decides its better off in future by relocating to the UK. So much for the scare stories of how Britain would suffer if we pulled out of the EU.

More reason to vote UKIP !
on what basis - please tell me which of their hilarious policies you agree with. Your view perhaps of the defence budget they propose or maybe their tax policies. What do you think of their proposed "banned" list of literature and documentaries and the 2 million cut in public sector jobs?
Good question - which UKIP policies to support:

Regaining National Sovereignty
An end to laws being imposed from Brussels without discussion at Westminster
Stop propping up failed economies in Southern and Eastern Europe - if we want to help other nations we should trade with them fairly, not give handouts
Control over own our borders
Ability to make trade agreements with "family" countries such as Canada, Australia, New Zealand etc
[quote][p][bold]elvisimo[/bold] wrote: [quote][p][bold]MSG[/bold] wrote: Just as the UK looks set to leave the EU when UKIP win the euro elections and the pressure mounts for us to have an in/our referendum on the EU , a major employer decides its better off in future by relocating to the UK. So much for the scare stories of how Britain would suffer if we pulled out of the EU. More reason to vote UKIP ![/p][/quote]on what basis - please tell me which of their hilarious policies you agree with. Your view perhaps of the defence budget they propose or maybe their tax policies. What do you think of their proposed "banned" list of literature and documentaries and the 2 million cut in public sector jobs?[/p][/quote]Good question - which UKIP policies to support: Regaining National Sovereignty An end to laws being imposed from Brussels without discussion at Westminster Stop propping up failed economies in Southern and Eastern Europe - if we want to help other nations we should trade with them fairly, not give handouts Control over own our borders Ability to make trade agreements with "family" countries such as Canada, Australia, New Zealand etc MilkandTwo
  • Score: 1

9:12pm Wed 16 Apr 14

MSG says...

MilkandTwo - Thanks for reminding others such as Elvisimo of why we intend to vote UKIP in May.
MilkandTwo - Thanks for reminding others such as Elvisimo of why we intend to vote UKIP in May. MSG
  • Score: -1
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