12:25 05 December 2012
Starbucks has obviously enraged a lot of coffee drinkers when it emerged that it did not pay corporation tax in Britain for 14 years. The company has been operating in the country for 15 years.
Starbucks has more than 700 outlets across the UK and it enjoys 31per cent market share. In addition, it had a turnover of almost £400million last year.
That is why, when Starbucks recorded no taxable profits, the Commons Public Accounts Committee said that that the figures are “difficult to believe.”
Because of this, the chain is now facing a boycott, which is backed by Treasury Chief Secretary, Danny Alexander.
Meanwhile, Starbucks took the first step to make amends. Yesterday, reports confirmed that the coffee giant is re-thinking their strategy of sending 4.7per cent of its turnover to the Netherlands - where the company enjoys special low tax rate.
With this, it is expected that the firm will declare taxable profits in the country.
Starbucks declined to comment, however, a detailed statement about the issue is expected later this week.
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