What the hell is going on with Starbucks and their creative accountancy? Its been reported that they have paid NO tax to the Irish state because they claim that they have made NO profits!
Yep – you read that right – they have said to the Irish and England government that they have made NO PROFITS.
This despite they claiming that their current model of operating in Ireland and England is so successful that they are extending it to their other foreign operations and are able to show profits to their shareholders!
A four-month investigation by news agency Reuters discovered that Starbucks was able to cut income tax by paying fees to other parts of its global business, such as royalty payments for use of the brand.
This means Starbucks UK is effectively making a loss and therefore does not have to pay any corporation tax. As a result, it has not broken any law. LINK
It seems that there is a tax loophole that needs to be closed RAPID, like tomorrow – as others will try similar to screw Ireland and England! It appears this has been going on for some time and how many other businesses are doing this needs to be investigated also.
In England alone they have been getting away with this racket for three years – having not paid a penny in tax there!
Starbucks is accused of paying just 10.65€ million in corporation tax in its 14 years on Britain’s high streets – and nothing in the last three years.