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Starbucks brews up big tax breaks

Monday, October 15, 2012 - 03:46

Oct. 15 - Reuters investigates how the coffee giant Starbucks has avoided paying any tax in the UK over the last three years and has made no profit, despite racking up revenues of £1.2 billion.

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The brand with a soul and conscience. That's the mantra Starbucks CEO Howard Schultz who in September join London's mayor Boris Johnson. To reveal plans to hire a thousand new apprentices in the UK. Schultz -- Chris things golf managing director of Starbucks UK. Were all smiles for the camera. Talking to current apprentices and trying to rustle up a perfect latte. But the coffee giant big boss was not quite as comfortable talking about Starbucks British tax bill. Starbucks it's. You -- -- -- -- as a second question lists are a little. Do you would -- with -- -- -- and letting it play like me and you can attack. On the profit Connors and not hey -- I think that has been sentenced. Yes and let's have a conversation about naming rights and -- -- -- but I guess outside while I don't like hearing and we typed that but it's for two months. And he declined beautifully and timely topic that's very reasonable questions that we just being like -- -- -- -- with that happy with. That you have investors unique very large profits -- which I love -- Kate Hudson and the Boston handles this time here. But I can't do right like sentence it will be because we've. Starbucks did grand Reuters a brief telephone interview eventually. Chief financial officer -- -- That the company strictly follows international accounting rules and pays the appropriate level of attacks in all the countries where it operates. A spokesman that it. Starbucks is committed to both paying our fair share of taxes. And to maximizing the value of our shareholders' investment. Unstoppable case. We also do this in the weight that is consistent with the values that have gotten those who were founded more than forty years ago. But tax containers find it difficult to reconcile the group's values and the way -- that's taxes in Britain. -- -- for Starbucks you can operation. Sure it is paid almost no tax on revenues of five billion dollars over the past thirteen years. Starbucks is touching itself a royalty for using it. A name. We are seeing corporate move from one territory for another one. Why would you who profit from one another one because -- the day I played -- At that moment that is the major problems. Indeed -- filed by Starbucks for its UK unit says it has never made a profit. Meanwhile management has consistently told investors that the British operation was one of its most profitable. What we've seen a large numbers of multinational corporations around the world who are shifting profit. And if you stop from their accounts of what -- -- which is exactly the exercise that you've done. You find that they shoot and do appear to be making profit in the -- and yet home paying taxes. The government missing that point it's time they in understood that -- And dedicated the resources to challenging. These. So meal that they should at least -- to illegal but all the officials structuring transactions. That is shifting profit out of the UK and making feel that other people have to -- that. Financial analysts say -- company's primary responsibility is to its shareholders. This means Starbucks has its duty to take advantage of any loophole in the confines. Tom -- and Reuters.

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Starbucks brews up big tax breaks

Monday, October 15, 2012 - 03:46