British arm of Starbucks to pay US owner fifteen times more than UK taxman

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Starbucks’ seven British businesses paid £22.5million in UK corporation tax in 2018.

Over the same period they handed a £353million dividend to American parent company the Starbucks Corporation.

Dame Margaret Hodge, former chairwoman of the Public Accounts Committee, said: “When ordinary families are struggling to make ends meet, it sticks in the gullet that people like Starbucks won’t pay their fair share of tax.”

Starbucks EMEA Ltd, which collects royalties from franchisees, paid £15million in UK corporation tax last year on profits of £200million – a rate of just 7.5 per cent.

 

The standard rate of UK corporation tax is 19 per cent.

 

Starbucks says the profits include a dividend from its Dutch arm which had already been taxed in the Netherlands.

Five of the firm’s other UK-based businesses with dealings abroad paid £3.5million between them in tax last year.

Accounts were also published for the Starbucks UK Coffee Company, which paid £4million in UK corporation tax last year.

The UK-based businesses produced sales of £567million.

George Turner, director of think tank Tax Watch, said: “The company insists that these large dividends are the result of profit that has been subject to tax overseas before they reached the UK, but how much, and where, is far from clear.”

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