Seeking Alpha

Starbucks (SBUX) reportedly will hold back $158M pegged for investments in the U.K. after...

Starbucks (SBUX) reportedly will hold back $158M pegged for investments in the U.K. after comments from Prime Minister David Cameron rubbed the company the wrong way. Mr. Cameron claimed the coffee giant must "wake up and smell the coffee" on the issue of tax avoidance. Starbucks had said it will review its tax payment policy, but is feeling a bit singled out in the region.
Comments (9)
  • Singled out, SBUX are feeling hurt? Thank-fully the UK PM & many others do not tolerate tax avoidance and more so bully boy management Mr.SBUX.... Hopefully many government around the world are reviewing SBUX trading and tax payments.....including the Vietnamese
    28 Jan 2013, 06:05 AM Reply Like
  • You are assuming govt will make good use of these taxes
    In reality much of these funds are used to buy special-interests behind the votes needed to maintain their coalition.
    I am not sure anymore which is worse
    28 Jan 2013, 06:45 AM Reply Like
  • tax avoidance is simply cost-cutting and the subject should be taken-up by every serious company ! So long as it doesn't become evasion ! SBUX has created an enormous amount of tax revenue for the British government in the form of VAT and income tax, as well as contributing to GDP (not to mention the £10m "windfall tax"), and so their presence in the UK should be welcomed !
    However I think their coffee tastes awful :-) I'm more of a Harris & Hoole guy, 49 % owned by TSCO :-)
    28 Jan 2013, 06:44 AM Reply Like
  • Is it the responsibility of a corporation to seek out and pay as much tax as possible? Or is it their responsibility to judiciously manage and, where possible, reduce expenses - including taxes?

     

    If you want them to pay more tax then change the tax law. Government passing judgement on how a successful company operates within their country is fairly laughable.
    28 Jan 2013, 06:56 AM Reply Like
  • They serve bad coffee, pay shitty wages and reduce their tax bills by questionable and very sophisticated loopholes. Most of their staff are foreigners any way (polish and more recently Spaniards) so it’s not that they are contributing a lot to the labour market.

     

    Why welcoming then? The same apply to Costa and Nero btw but at least they serve better lattes.
    28 Jan 2013, 06:56 AM Reply Like
  • So instead of whining about it, close the loopholes. And maybe you can look into a much more restrictive immigration policy - seems like you don't care for Poles or Spaniards.
    28 Jan 2013, 07:44 AM Reply Like
  • I agree. It’s not about restricting immigration to poles, Spaniards, etc. They can come and work and do what they want. My point is that SBUX sell themselves as a big contributor to the economy when in fact they are not. They keep rents extremely high in the high streets making for a very non-diverse ecosystem. It’s all chains now, the small merchant cannot afford being there. It’s easy to connect the dots now, they can probably afford be in the most expensive roads in the UK selling shitty items for £2.99 because they squander all the money away. Keep competition away by not paying taxes. What is the net gain here?
    28 Jan 2013, 08:03 AM Reply Like
  • If you look at SBUX 10-K you will see that they one of they highest tax rates of any company - just not in the UK. Because really do make much profit in the UK and because they other EU countries have used more enlightened tax policy to attract businesses.
    28 Jan 2013, 11:21 AM Reply Like
  • The Mighty Wart

     

    You have some shitty posts. Get an education so you can express yourself less shitty!!!
    28 Jan 2013, 12:15 PM Reply Like
DJIA (DIA) S&P 500 (SPY)