Starbucks Under Fire over Its Tax Policy

Starbucks has claimed financial losses in the UK, despite significant sales, due to high costs and strategic tax practices. The company is under scrutiny for not paying corporation tax, leading to public and political backlash. Starbucks is in discussions with HMRC and the Treasury to address these concerns. The company has invested heavily in the UK and is committed to staying, but faces criticism over its tax strategies. Public opinion and political pressure are influencing Starbucks' approach to tax compliance.

What has Starbucks claimed about its financial performance in the UK?

• It has only been profitable in the last three years.

• It has broken even every year.

• It has lost money almost every year.

• It has been highly profitable every year.

Why has Starbucks not paid corporation tax in the UK despite high sales?

• They have been granted a tax holiday by the UK government.

• They are exempt from UK taxes.

• They have high operational costs and pay royalties to low-tax countries.

• They have no sales in the UK.

What is the main concern of customers and MPs regarding Starbucks' tax practices?

• Starbucks is not paying enough corporation tax.

• Starbucks is increasing coffee prices.

• Starbucks is not investing enough in the UK.

• Starbucks is closing too many stores.

What is the stance of the Public Accounts Committee on corporation tax?

• It should be increased for all companies.

• It should be a voluntary arrangement.

• It should be mandatory and fair.

• It should be abolished.

How has Starbucks responded to the criticism about its tax practices?

• By reducing coffee prices.

• By moving its headquarters to the UK.

• By investing £200 million in UK stores and committing to stay long-term.

• By closing all UK stores.