Starbucks - UK tax 'avoiders'

[APACHE]

No matter which way you look at it ,under the tax laws of this country Starbucks have not broken the law. What they've done is found a loophole, the EC, it's up to the Gov. to close it to collect the tax but don't hold your breath waiting, we,re in the EC.

 

[CHAPPERS]

It's funny how many people you see in Starbucks wearing Gap clothing fiddling with an iPhone.

 

[The Large One]

Can I just say at this point that when I'm walking into town and fancy a coffee, I give the Starbucks in North Road a swerve and head to the Small Batch Coffee Company in Jubilee Street instead, it is much nicer in there.

I know it has nothing to do with the corporate tax avoidance subject of this thread, I just thought I'd support a local business.

 

[Thunder Bolt]

So many companies doing it. BBC3's THE REVOLUTION WILL BE TELEVISED do a sketch on it quite often. Boots, Apple and Vodaphone have all been pointed out as 'tax avoiders' on this show.

So who is, on this site, going to boycott Boots, Apple & Vodaphone?

 

[BadFish]

So who is, on this site, are going to boycott Boots, Apple & Vodaphone?

anyone who actually cares about this issue

 

[DJ Leon]

Why get hot under the collar about Starbucks doing this? EVERY multinational company does this. That's why they're multinational. We should be furious instead that the government pretends this issues doesn't exist whilst attacking the poor. We're all in this together remember.

 

[CHAPPERS]

Can I just say at this point that when I'm walking into town and fancy a coffee, I give the Starbucks in North Road a swerve and head to the Small Batch Coffee Company in Jubilee Street instead, it is much nicer in there.

I know it has nothing to do with the corporate tax avoidance subject of this thread, I just thought I'd support a local business.

There's no excuse to use that Starbucks at all. Plenty of places to get a proper cup of coffee within two minutes walk.

 

[Deleted member 18477]

Although I have always preferred Neros and Costa to Starbucks anyway, I have to say I did actually completely stop going to Starbucks because of this. What a crock of shit.

Starbucks is ok but what I don't like about Starbucks isn't the name thing... I don't like it because students and city workers think its fashionable to go to Starbucks like its the bees knees. It's just coffee FFS. Costa and Nero for me have a more relaxed atmosphere and that is why I choose them so I can relax whilst having a coffee.

 

[Bedsex]

I'm going to reply to this, because others have dismissed this comment, without explaining why it is wrong.

You are correct, Starbucks have made no UK profit. However, the reason for this is that they have been loading the UK business with costs of running Starbucks in other countries with much lower tax rates. This have the effect of making the UK arm show as being loss-making, whilst in other counties Starbucks make a huge profit. This means they do not pay much tax in the UK, but they do pay tax in the other countries on the profits.

Basically they have put in place a work-around so that they only pay taxes in the countries with low tax rates.

But if they had done this by recharging costs from low tax jurisdictions to the UK, then unless these charges were at an arms length rate, ie what a company would pay a 3rd party for providing those services, then they would fall foul of the transfer pricing rules. I haven't seen anything anywhere to suggest that their transfer pricing is incorrect (although it does seem odd that they continue to make losses), which would indicate that the costs they are incurring are legitimate.

 

[element]

I usually frequent the $bucks at Churchill Square, but went in The Bystander on London Road today instead. Nicer coffee too

 

[seagullsovergrimsby]

Are you sure you're not referring to the 10% tax credit you automatically get when paying a dividend out?

Working tax credit/child tax credit are cross referenced with HMRC records so to get that they would have to not be declaring their dividends to HMRC which is tax EVASION not avoidance. Getting tax credits by doing so is then FRAUD. If I knew anyone doing this I would ring the hotline as ultimately we are all paying for this.

When claiming WTC/CTC you have to declare any additional income such as share dividends , bank and building society interest. What I found stupid was the £300 annual ceiling before tax credits were offset applied to a single person but a couple had the same limit.

 

[Barrel of Fun]

Teachers that wont work more than five weeks without at least one week off...

Well, the first half of this term is 8 weeks long, so you are wrong on that count. Replace that with who to boot.

 

[Barrel of Fun]

EBay joins an ever growing list of successful companies avoiding large tax sums.

BBC News - EBay on sales of £800m

 

[Nibble]

I am Spartacus.

Haha! I just confuse them by saying my name is Jenny. That's with two L's.

 

[Nibble]

Oh the self interested moral outrage from those creaming off a nice safe income from the taxpayer. Teachers that wont work more than five weeks without at least one week off, or firemen that wont change shift patterns so they can work about 100 days a year whilst doing another job, or policemen who retire then sign up for another Force to get a double salary, all of those mentioned also getting a large final salary pension. Yes these people have every right to have a go at a company that employs those struggling to get on in England. My local starbucks to work has a staff of Eastern European or asian workers almost exclusively. They work all hours and always have a smile. Why these guys should be in the slightest worried about the pensions of our teachers, I have no idea but I'm sure the Police Federation, Fireman's trade union and the NUT can in their own heads. Frankly until the state gets a grip of those that us taxpayers are paying for, then the public sector has no right to engage in moral outrage as it just looks like looking after their own cushy number.

You are aware that all these people in the professions you've just mentioned pay tax too? Anyway, as for SB not paying tax that's nobodies fault but the nappy throwing Johnny Foreigners, trus me I know, I lived in Dorking for 6 years. We had a black man working in Sainsbury's there, we'd pop in of a morning and rub him for luck.

 

[Herr Tubthumper]

This coffee house is the best. The owner has installed stone bollards outside to prevent parents bringing push chairs in complete with a picture of a pram with a red line through it.

m.guardian.co.uk

 

[Nibble]

This coffee house is the best. The owner has installed stone bollards outside to prevent parents bringing push chairs in complete with a picture of a pram with a red line through it.

m.guardian.co.uk

"Coffee Nazis, choke on this swill"

 

[4-p]

How sad, UK businesses are still losing out to foreign or just US ones in our own country wtf!
It's a joke...

 

[element]

Just on the eBay thang, it mentions the profit on 'sales' of £800 million, which is confusing, as is this the cumulative final selling prices on the auction site? Meaning if they take, say, 10% of this, it makes it £80 million 'commission', or is it actually £800 million 'commission' @ 10%, meaning that eBay UK sells over £8 billion p.a. worth of gear on their site

 

[Barrel of Fun]

Apple paid less than 2% tax on overseas profit last year | Technology | guardian.co.uk

Apple join a long, long list of big companies avoiding tax.