Starbucks donating an extra £10M to us Brits

Kris Engskov, the Starbucks boss in Britain, announced that they would be donating an extra £10 million to the British exchequer in 2013. Even with the recent backlash about their tax antics, Starbucks have made this bold tax move without any pressure from governmental or financial institutions.

Mr Engskov said before a parliamentary committee that the company has only made one year of profit in the UK since their launch in 1998, paying only a total of £8.6m in corporate income tax in 14 years.

Starbucks still deny using any tax-haven techniques to dodge paying British tax, although have come forward and admitted paying large quantities of money to two different Starbucks subsidiary in both Switzerland and the Netherlands, both of which make plenty of profit. They went further and admitted to having a ‘secret deal’ with the Dutch taxman, insuring a lower tax rate for its Amsterdam subsidiaries.

Whatever route or strategy that Starbucks goes down in 2013 regarding tax payments in Britain, the Britain’s chancellor of the exchequer George Osbourne has promised to wage war on the tax havens and the companies that seek them.

Whether this continuing saga is enough to prise Starbucks from the higher echelons of the UK coffee retailer, there is little that us regular drinkers can say. However if you feel inclined to boycott this tax-dodging giant, every one of us has the ability to vote with our wallet.

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