Starbucks tax break.
The gap between Starbucks’s turnover, and the amount of tax it paid last year has made it the latest company to come under the light for its lack of donations to Revenues & Customs.
Costa Vs. Starbucks
• Costa’s sales was £337m March 3rd 2011
• Its tax bill came to £15m
• 30.5% of its profits
• Starbucks has been in the red for almost 10 years, making it not liable for tax
• In 2011 Starbucks made a loss of £32.9m, but will not explain how.
In a statement Starbucks insisted it had ‘paid and will continue to pay its fair share of taxes in full compliance with all UK tax laws, as it always has’. They then said they were a ‘good tax payer’ which behaved in a moral way that balanced profit with social compliance.
In 2011 corporations and individuals are both under a close eye after a jump in the level of tax avoidance schemes that have cheated the government out of billions of pounds. HMRC said that companies like Starbucks are constantly scrutinized but just because they make a lot of money doesn’t mean its liable to be taxed in the UK