Starbucks has offered to pay more taxes in the UK after increased pressure from British lawmakers, according to the Boston Globe.
The coffee company has been accused by officials in Britain of avoiding taxes in the country. Since government spending is on the cusp of being cut, lawmakers are asking executives to cough up a bit more cash than they have in the past.
Starbucks has reportedly buckled under the pressure.
“Having listened to customers and to the British public, Starbucks in the UK will be making changes which will result in the company paying higher corporation tax in the UK — above what is currently required by law,” the company said in a recent statement.
According to The Huffington Post, Starbucks has agreed to pay $16 million a year in order to make good with the British government. Over the past 14 years, the company has only paid $13.8 million in corporate taxes.
Although some may think the coffee company has broken a number of laws by skipping out on its share of the tax bill, apparently Starbucks hasn’t done anything wrong. Companies which operate in Europe can take advantage of low tax rates by basing operations in the European nation of its choosing.
Since Starbucks pays quite a bit of money to the folks in the Netherlands, it doesn’t have to pay as much as those entities based in the United Kingdom.
However, not everyone is overly impressed with the company’s decision to pay more in taxes. Hannah Pearce, spokesperson for UK Uncut, still feels Starbucks is a tax dodger.
“Starbucks have been avoiding tax for over a decade and continue to deny that it paid too little tax in the past. Today’s announcement is just a desperate attempt to deflect public pressure,” Pearce explained.
What do you think about Starbucks paying more in UK taxes?