We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedGovernance

Starbucks says conversation with UK officials ‘routine’

Company categorically denies threatening to withhold UK investment

Article comments

Global coffee chain Starbucks has said its meeting with UK officials on Friday was routine and "long-scheduled" and not an urgent one sought in connection with the public criticism it has faced in recent months over its tax affairs.

The company also categorically denied having threatened to withhold UK investment. Last week, at the World Economic Forum in Davos, UK Prime Minister David Cameron said tax avoiders "need to wake up and smell the coffee" interpreted by many as a warning shot to Starbucks. New reports on Sunday suggested Starbucks was worried it was being deliberately targeted as Kris Engskov, its UK managing director, met government officials.

However, dismissing the reports, Starbucks said, "While, we do not discuss the details of our government meetings but can say that we do not recognise how it has been reported. Starbucks agrees with the Prime Minister that all businesses should pay their fair share."

The company said it employed 9,000 people in the UK and contributed £300 million a year to the country's economy. "We are forgoing tax deductions that will make the Exchequer at least £20 million better off," it added.

Separately, Conservative party Chairman Grant Shapps said no single company was being cornered by the government or the Conservative Party but that all corporations need to pay "their fair share" of tax.

Speaking to Sky News on Sunday, Shapps said, "I don't think we would ever single out a single company, but I do think companies in this country need to pay their way. I think they need to do what's right as far as that is concerned and I think most people watching this would agree, companies should pay their fair share of taxation."

"That applies to that company and anyone else you care to mention. It certainly applies to millions of smaller businesses in this country," he added.

In November 2012, a committee of MPs accused Starbucks along with Google, Amazon and several other multinational corporations of “immoral” tax avoidance. Subsequently, the government announced a campaign against "tax dodgers" to get back a potential £2 billion a year in lost taxation.


Recommended Articles


Starbucks says conversation with UK officials ‘routine’

What’s going to kill your company?

What’s going to kill your company?

The role of the CFO and the board in strategic risk governancemore ..

Tesco’s new finance chief starts two months early amid accounting crisis

Marks and Spencer releases Alan Stewart early by to help deal with £250 million hole in Tesco’s accountsmore ..

Microsoft removes Bing image widget after Getty lawsuit

The company is being sued by Getty Images for copyright infringementmore ..

Apple loses bid for sales ban in Samsung patent case

Apple failed to show that it suffered enough harm as a result of Samsung's infringementmore ..

What makes a good board report?

Examining how CFOs can improve the way they report back to the boardmore ..

Examining the issue of corporate litigation funding

Litigation funding is a very useful tool for CFOs but not a panacea for all legal mattersmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..


* *