Starbucks UK Tax

About Starbucks UK Tax

In 2012, Reuters revealed that Starbucks had paid just 8.6 million in UK corporation tax over 13 years despite generating 3 billion in UK sales. Starbucks achieved this by paying royalties to its Dutch subsidiary for intellectual property and paying inflated prices to its Swiss subsidiary for coffee beans. The revelations led to public boycotts and protests. Starbucks voluntarily paid 20 million in additional UK tax. The European Commission later ruled that the Dutch tax ruling for Starbucks constituted illegal state aid. The Starbucks case was one of several that fueled public anger at corporate tax avoidance, alongside Google, Amazon, and Apple. The cases led to increased public support for anti avoidance measures like the OECD BEPS project.