Starbucks says it will increase taxes by 20 million pounds over the next two years to restore public trust.
Coffee chain giant Starbucks announced on the 6th that its UK subsidiary will increase taxes to the British government by about 20 million pounds over the next two years. This is a commitment made by Starbucks under the pressure of British public opinion.
British media disclosed in October that Starbucks entered the UK market in 1998 and has 735 chain stores with a turnover of more than £3 billion, but has paid only £8.6 million in corporate income tax over the past 14 years. Starbucks has turnover of £1.2 billion over the past three years but does not pay corporate income tax to the UK.
The incident caused an uproar in the UK, where many people expressed anger at Starbucks' actions and launched an online boycott of Starbucks.
Chris Engerkovo, general manager of Starbucks UK, said Starbucks would pay higher taxes to the UK government over the next two years, regardless of earnings.
Mr Engerkovo said Starbucks was "very shocked" by the antagonism among the British public over the incident and would take further action to restore public trust.
But he does not admit that Starbucks has evaded taxes in the past. "We have been paying taxes legally since we started our business in the UK." But we have also realized that in a critical period of economic downturn, customers clearly want us to do more. "
Google, the internet company that also faces tax avoidance charges in the UK, said its current arrangements were in full compliance with UK tax regulations and would not be changed.
(responsible Editor: Leo)
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