Starbucks To Pay £10M In UK Corporation Tax
Published on Jun 23 2013 4:31 PM in Restaurant
The world's biggest coffee chain, Starbucks, has announced that it will pay £10 million in UK corporation tax in 2013 and 2014, following criticism squared at the coffee giant for its reluctance to do so. The company has spent £5 million on UK tax this year and will spend the same amount again later this year and a further £10 million next year, in 2014.
Commenting on the move, Starbucks, which has more than 700 stores in the UK and more than 18,000 worldwide, said that will close or relocate unprofitable stores and make greater use of café franchising opportunities rather than relying solely on company-owned locations in a bid to become profitable in the UK.
“Six months ago, we felt that our customers should not have to wait for us to become profitable before we started paying UK corporation tax,” the company said in the statement.
“We listened to our customers in December and so decided to forgo certain deductions which would make us liable to pay £10 million pounds in corporation tax this year and a further £10 million in 2014.”
Starbucks has over 30 cafés in Ireland, with many of these located in out-of-town shopping centres.