I didn't say the current corportation tax setup was Starbucks fault.  They themselves are offering 4% of their turnover as a good-will gesture after seeing the bad publicity might affect their bottom line.  A similar percentage might be borne in mind as a minimum for multi-nationals to operate here. It's obviously a reasonable enough figure for Starbucks not to want to pack up and go home as it's a figure they've now volunteered.  Likewise I would expect British companies to contribute similarly to the economies they operate in.
 
I think you'll find the Nissan, Toyota, Honda et al all pay corporation tax currently.
 
I am blaming the rules as well as those knowingly taking advantage of them when to do so is clearly damaging for all of us that are 'in this together'.
 
Society currently would think that Joe Bloggs painter and decorator is doing what every 'good bloke' should be doing yet pointing a finger at the single mother pushing a pram purchased through a DSS crisis loan (which she'll have to pay back) in order to pick up her housing benefit.  We don't get to hear that Joe Bloggs is actually the childs Father and not doing HIS duty as a parent either.
 
Yup we all know what the rules are and we also know when we are bending them or taking advantage.  Toe rags exist throughout society's different strata they are not all accumulated at the bottom I would say it's likely that the percentage is pretty much constant throughout.  Human nature seems pretty much immune to good or bad fortune.
 
Watch when more and more multi-nationals start to migrate in from the Orient you'll see the rules on corporation taxes change all too quickly then I'll wager. 
 
 

zungle


Sorry guys,

I personally like our Star Bucks.
   

Hey that's OK, no need to say sorry, it's not like I saw your fist punch through the monitor to rip our fricken heads off,  ya'  it's OK man,  it's all good.  

I know friends who get their regular fix at Starbucks, but they know I much prefer to roll my own :) 

I really don't mind Starbucks. People always come out with the "$6 for a cup of Joe, you have o be kidding" line but come on, a regular cup of normal Starbucks coffee is $2. Yes that's 50-75 cents more than a cup from the deli or bodega but believe me, here in New York bodega coffee is undrinkable. Starbucks isn't "luxury" coffee, it's just "decent." The $6 drinks are the large, fancy choca-mocha-skinny caramel whipped cream vanilla latte crap that chicks buy. 

As for their business ethics, don't really have a problem with anyone minimizing their tax liabilities, as long as it's legal. Everyone who owns/works at Starbucks is paying income tax at the usual rate. They give more to society than they take. They're providing jobs and stimulating the economy. Sure they could pay their employees more, but then you'd pay more for a cup of coffee and that extra money would be diverted from the revenues of other businesses, who also employ people. 

They are WAY overpriced. Perhaps they should fold their tent in GB and move everything to Deutchland? Really, you cannot blame any business for taking advantage of any loophole in any tax law. They are there to maximize profits. Someone needs to fix the law.... simple! Then the cup of coffee will be 8 quid.
 
J

I make a pot of Chock Full 'O Nuts New York Blend every morning... sometimes I manage to find some Kenya AA and buy some of that. If I go to Starbucks I get a doppio... yum!

J

bapu

Jonbouy


It's like everyone used to say Mucky D's was responsible for the destruction of the environment.

.......  I never saw what they were on about.

The food?

It's not McD's fault that people like to line up to eat ....!

Yes but...

The reason SB and other multi's have 'not' paid tax in the UK is because the rate of corporation tax is lower in other places.  And current law allows for them to register offshore.  Personally I don't see any particular problem with this - it's not illegal, and as an investor in the company I would expect them to make the most effective use of my money.  That's good effecicient accounting practice imo, and allows the company to invest in its growth and long term future rather than handing it to a bunch of people who have a track record of fiscal mismanagement, driven mainly by the need to secure your vote next time.

This is one of the reasons Osbourne announced a further reduction in Corporation Tax this week.  That will firstly encourage more companies to pay tax through the system locally by registering in the UK, and also by extension increase the level of local employment.  Don't forget, all those employees they hire mean that SB are still paying employer NI contributions for them here as well.

Oh, of course once they start paying a greater tax burden here, those cups of Americano will go up another 10p.  So everyone will then complain and blame even more.

Thermos and a jar of Alta Rica, that's me. £3 lasts me about 2 weeks. 

Jonbouy


750 outlets in the UK and they make £0 profit here?
 
At least that's what they tell the tax man in order not to pay a penny in corporation tax.
 
These people more than the unfortunates that often get the finger pointed at them for not contributing are the true leeches on society.
 
Oh, and now they've suddenly found a £10m contribution following a public outcry.
 
We're all being told to tighten our individual belts while multi-national corporates go around exploiting what little is left and answer to nobody but themselves with a little creative accounting.
 
I get a bitter after taste from that stuff, not for me thanks.

While I've got no truck with Starbucks or any of the other multi nationals I really think the problem is the system that allows this to happen legally, that's the real issue. It's okay the government bleating on about it being immoral - IMHO it is, I couldn't agree more. Trouble is I can't fix it, they can and so they should. I'm off to burn my tax return.

FastBikerBoy

Jonbouy


750 outlets in the UK and they make £0 profit here?

At least that's what they tell the tax man in order not to pay a penny in corporation tax.

These people more than the unfortunates that often get the finger pointed at them for not contributing are the true leeches on society.

Oh, and now they've suddenly found a £10m contribution following a public outcry.

We're all being told to tighten our individual belts while multi-national corporates go around exploiting what little is left and answer to nobody but themselves with a little creative accounting.

I get a bitter after taste from that stuff, not for me thanks.

While I've got no truck with Starbucks or any of the other multi nationals I really think the problem is the system that allows this to happen legally, that's the real issue. It's okay the government bleating on about it being immoral - IMHO it is, I couldn't agree more. Trouble is I can't fix it, they can and so they should. I'm off to burn my tax return.

Simple and practical.
 
I like this post.