Starbucks offers talks over tax

03 December, 2012

Starbucks said it has “listened” to its customers following the revelations about its corporation tax arrangements and has offered to have talks with the Treasury.

The offer comes as a report by ministers said that global firms in the UK that pay little or no tax are an “insult” to British businesses.

Public Accounts Committee chairwoman Margaret Hodge said HM Revenue and Customs (HMRC) needed to be "more aggressive and assertive in confronting corporate tax avoidance".

The influential committee's report comes after it took evidence in November from executives from Starbucks, Google and Amazon about the amount of corporation tax the companies have paid in the UK.

Margaret Hodge said: "These global companies are making money in the UK. All we are saying is that if you have economic activities in the UK you are making profits and tax is payable on that," she said.

In the report, Hodge said multinational firms with large UK operations generating "significant income" were "getting away with paying little or no corporation tax here".

Starbucks said in a statement: "We have listened to feedback from our customers and employees, and understand that to maintain and further build public trust we need to do more.

"As part of this we are looking at our tax approach in the UK. The company has been in discussions with HMRC for some time and is also in talks with the Treasury."





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