Starbucks UK Division Under Fire for Low Corporation Tax Payment Despite High Profit Margin

Friday, 5 April 2024, 13:21

Starbucks UK division paid only £7.2m in corporation tax last year on a gross profit of £149m, prompting criticism over its high royalty and licensing payments. This highlights the ongoing issue of multinational corporations leveraging tax strategies to minimize tax obligations, impacting the UK Treasury. Despite grossing £548m in sales in Britain, the relatively low tax payment has reignited debates on tax fairness and transparency.

https://store.livarava.com/caf9020b-f350-11ee-8967-87cc5c87fb08.jpg — Starbucks UK Division Under Fire for Low Corporation Tax Payment Despite High Profit Margin

Starbucks UK Tax Controversy

Starbucks' UK division faced criticism for paying only £7.2m in corporation tax on a £149m gross profit, primarily due to high royalty and licensing payments.

Key Points:

Low Tax Payment: Despite £548m in sales, the tax bill of £7.2m drew criticism.
Royalty Payments: A hefty £40.4m payment to the parent company raised eyebrows.

The controversy underscores ongoing concerns about tax avoidance strategies used by multinational corporations.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.