Starbucks may be investigated by UK tax authorities for tax avoidance of US $1.93 billion
On the evening of October 17, Beijing time, Starbucks may face an investigation by the British tax authorities. The move comes after a senior member of Congress called for an investigation into how Starbucks has been able to avoid paying 1.2 billion pounds ($1.93 billion) in taxes since 2009.
Starbucks had previously told investors that its UK division was highly profitable, but it also told the UK authorities that its UK division was losing money and therefore did not bear any taxes, Reuters reported. Members of Congress say this undermines public trust in the tax system.
Margaret Hodge, chairman of the Public accounts Committee (PAC), said the UK tax authorities should investigate Starbucks tax avoidance. She is expected to ask questions about Starbucks next month.
However, there is no evidence that Starbucks has been engaged in any form of misconduct.
(responsible Editor: Leo)
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