Starbucks tax avoidance: Is it fair?
There’s a big controversy brewing regarding Starbucks, and their tax arrangements in the UK.
Many independent coffee shop owners have expressed outrage that Starbucks has managed to pay very little in the way of corporation tax, while smaller and less resourceful cafes pay a larger contribution.
Some people have even called for a boycott of the chain, and the pressure group UK Uncut is now planning protests and sit-ins at the giant’s corporate offices, as well as at some of their London branches.
Starbucks launched in the UK back in 1998, and has enjoyed considerable success since then. Media reports suggested that the chain has paid just £8.6 million in corporation tax since the first store opened in Britain.
The chain remains defiant that customers will not be affected by UK Uncut’s sit-in, and that no central London locations will be closed down temporarily despite the ongoing protests.
HMRC has said that tax avoidance is an ongoing concern. Compared to the 2010/11 tax year, where £31 billion was lost due to avoidance, £32 billion has been wiped off revenues in 2011/12 – a rise of some £1 billion.