NOM BLOG

Starbucks Telling Investors One Thing, UK Tax Agency Another

 

According to this Reuters news report, Starbucks is talking out of both sides of its mouth when comes to taxes, just like they want to have it both ways when it comes to being pro-gay marriage here in the United States and taking "no position" on the issue internationally:

Starbucks' coffee menu famously baffles some people. In Britain, it's their accounts that are confusing. Starbucks has been telling investors the business was profitable, even as it consistently reported losses.

This apparent contradiction arises from tax avoidance, and sheds light on perfectly legal tactics used by multinationals the world over. Starbucks stands out because it has told investors one thing and the taxman another.

The Seattle-based group, with a market capitalization of $40 billion, is the second-largest restaurant or cafe chain globally after McDonald's. Accounts filed by its UK subsidiary show that since it opened in the UK in 1998 the company has racked up over 3 billion pounds ($4.8 billion) in coffee sales, and opened 735 outlets but paid only 8.6 million pounds in income taxes, largely due because the taxman disallowed some deductions.

You can join over 48,000 people around the world who have chosen to Dump Starbucks over its support for same-sex marriage.