Tuesday, December 4, 2012

Starbucks paid no taxes in the UK last year

There is a big battle in England over corporate taxes. Last several large companies paid no taxes

The British Broadcasting Corporation has a long story here: Tax: Starbucks in talks with UK's Revenue and Customs.

Starbucks has 700 stores in the UK and sales of 400 million pound (600 million dollars) but paid no UK corporate taxes. Instead transfers all its profit to a "shell" company in the Netherlands as royalties   Microsoft, Google and Amazon all pay abnormally low taxes in the UK.

The article also had a strange quote from chancellor George Osborne saying the UK must remain "Tax competitive"  with other countries to attract corporations. The truth is the United Kingdom would be attractive to starbucks and other coffee sellers regardless of the tax rate.  In a tax reasonable environment, starbucks wants to be in the United Kingdom.

Political leaders are doing a disservice to their country, communities and people by not collecting more taxes from companies like Starbucks 

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