Starbucks outlines corporation tax payments
Dropping tax deductions, and the evolution of the business, is likely to see Starbucks consistently pay corporation tax
STARBUCKS AS CONFIRMED that it paid corporation tax for the first time since 2008 – with more to follow.
The US coffee chain has already paid up £5m with another £5m to follow later this year, following public and political pressure to pay more tax. It has insisted that the lack of corporation tax paid was due business issues, such as high rental costs, rather than aggressive avoidance.
A further £10m will be paid in 2014, after the chain decided against claiming reductions against various transfer pricing mechanisms and capital allowances.
It was now working towards bringing the UK into profitability, moving stores and closing some. It also expects to use franchising and licensing to reduce costs.