Europe, Middle East and Africa Oil and Gas Correspondent
Tom's Feed
Oct 20, 2012

Starbucks brand hit by UK tax criticism

LONDON, Oct 20 (Reuters) – Starbucks’s reputation among
consumers in Britain has been hit by wave of criticism of its
tax affairs from politicians and the media, pollster YouGov
said.

A Reuters report showed the coffee chain paid no tax on 1.2
billion pounds of sales in recent years by telling the taxman it
was making no profit, even as it told investors the unit was
“profitable”.

Oct 18, 2012

UK taxman says cost of evasion and avoidance hits 32 bln stg

LONDON, Oct 18 (Reuters) – Britain’s taxman said the cost of
non-compliance with tax rules cost the government 32 billion
pounds ($51.73 billion) in lost revenues in 2010-11, up from 31
billion a year earlier.

Tax avoidance has become a charged subject in Britain amid
austerity budget cuts and the government is under pressure to
show it is ensuring big business and the wealthy bear their
share of the economic burden.

Oct 17, 2012

UK committees to examine Starbucks tax strategies

LONDON (Reuters) – Two British parliamentary committees are due to quiz tax officials about how Starbucks was able to avoid paying tax on 1.2 billion pounds ($1.93 billion) of sales since 2009.

Lawmakers said a Reuters report that showed Starbucks had been telling investors its UK unit was highly profitable while telling British authorities the unit was lossmaking, and thereby not liable for tax, undermined public trust in the tax system.

Oct 17, 2012

UK record challenges link between corporate tax cuts and jobs

MARKET BOSWORTH (Reuters) – When precision engineer JJ Churchill bought costly new machinery and recruited workers to operate it, the firm was doing the bidding of successive British governments – investing in high value manufacturing and creating skilled jobs.

But its reason for spending 1 million pounds on two steel milling and grinding machines last year had little to do with the government’s policy of helping British industry by steadily cutting corporate tax rates.

Oct 17, 2012

Analysis: UK record challenges link between corporate tax cuts and jobs

MARKET BOSWORTH, England (Reuters) – When precision engineer JJ Churchill bought costly new machinery and recruited workers to operate it, the firm was doing the bidding of successive British governments – investing in high value manufacturing and creating skilled jobs.

But its reason for spending 1 million pounds ($1.6 million) on two steel milling and grinding machines last year had little to do with the government’s policy of helping British industry by steadily cutting corporate tax rates.

Oct 17, 2012

Starbucks may face UK tax probe after MP asks for inquiry

LONDON (Reuters) – Starbucks may face an inquiry into its British tax affairs after a senior MP called for an investigation into how the company could avoid paying tax on 1.2 billion pounds of sales since 2009.

A Reuters report that Starbucks had been telling investors its UK unit was highly profitable while telling the UK authorities that the unit was lossmaking, and thereby not liable for tax, undermined public trust in the tax system, MPs said.

Oct 17, 2012

Starbucks may face UK tax probe after lawmaker asks for inquiry

LONDON, Oct 17 (Reuters) – Starbucks may face an
inquiry into its British tax affairs after a senior member of
parliament (MP) called for an investigation into how the company
could avoid paying tax on 1.2 billion pounds ($1.93 billion) of
sales since 2009.

A Reuters report that Starbucks had been telling investors
its UK unit was highly profitable while telling the UK
authorities that the unit was lossmaking, and thereby not liable
for tax, undermined public trust in the tax system, MPs said.

Oct 15, 2012

How Starbucks avoids UK taxes

LONDON (Reuters) – Starbucks’ coffee menu famously baffles some people. In Britain, it’s their accounts that are confusing. Starbucks has been telling investors the business was profitable, even as it consistently reported losses.

This apparent contradiction arises from tax avoidance, and sheds light on perfectly legal tactics used by multinationals the world over. Starbucks stands out because it has told investors one thing and the taxman another.

Oct 15, 2012

Special Report: How Starbucks avoids UK taxes

LONDON (Reuters) – Starbucks’ coffee menu famously baffles some people. In Britain, it’s their accounts that are confusing. Starbucks has been telling investors the business was profitable, even as it consistently reported losses.

This apparent contradiction arises from tax avoidance, and sheds light on perfectly legal tactics used by multinationals the world over. Starbucks stands out because it has told investors one thing and the taxman another.

Oct 15, 2012

Fast food, tax lite

LONDON (Reuters) – When does a hamburger become intellectual property? For fast food giants, the transformation happens at the tax office.

Restaurant chains such as McDonald’s, Burger King and Subway, and coffee chain Starbucks, save millions in taxes each year by claiming that part of what they’re selling is the parent companies’ know-how.

    • About Tom

      "Tom leads our coverage of the oil and gas industry in Europe, the Middle East and Africa and is also author of 'Spills & Spin: The Inside Story of BP'. A former oil broker who turned to journalism 12 years ago, he is regularly interviewed on CNBC and other TV and radio stations on energy matters. Tom has reported from over twenty countries including Iran, Iraq, India, Pakistan, Tanzania, the U.S. and Russia. As Europe, Middle East and Africa Oil & Gas Correspondent, he has chartered the rise in oil prices to record levels, interviewed oil ministers and the CEOs of ..."
    • Follow Tom