Report: Starbucks may reconsider U.K. tax payments
New York -- Starbucks Coffee Co. is considering changes to its tax practices in the U.K. in the wake of criticism from lawmakers, tax campaigners and the media, according to Reuters.
A Reuters examination of Starbucks accounts that was made public in October showed that the chain had reported 13 years of losses at its U.K. unit, even as it told investors the operation was profitable and among the best performing of its overseas markets, the report said.
The chain's U.K. unit paid no corporation tax in the last three years for which figures are available and has only paid 8.6 million pounds income tax since 1998, despite racking up 3 billion pounds ($4.8 billion) of sales, Reuters said.
Starbucks has maintained that it had always complied with British tax laws. But a spokeswoman added in an emailed statement that the public mood had caused the company to reconsider its tax arrangements, which include intercompany royalty and interest payments that reduce the U.K. unit's taxable profit, according to Reuters.