Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Starbucks to Pay ’Significant’ U.K. Taxes Next Two Years

Starbucks Corp. said it will pay “a significant amount” of corporation tax in the U.K. in 2013 and 2014 after the world’s largest coffee-shop operator came under fire by lawmakers for not paying any corporation tax there.

“We are making a commitment that we will propose to pay a significant amount of corporation tax during 2013 and 2014 regardless of whether our company is profitable during these years,” according to the text of a speech to be given today at the London Chamber of Commerce by Kris Engskov, managing director of Starbucks U.K. “We are still working through some of the calculations, but we believe we could pay or prepay” about 10 million pounds ($16.1 million), he said.

Starbucks, which has been closing under-performing stores in the U.K. this year, has pledged to build trust in the nation after being criticized by British lawmakers for not paying any tax for the past three years. There has been no suggestion that Seattle-based Starbucks has broken the law. The company has about 760 stores in the U.K.

Starbucks will not claim any tax deductions for royalties in the U.K. in 2013 and 2014 and will pay more than is required by law, according to the speech. In the past three years, the company has paid more than 160 million pounds in employee, national insurance and business rates tax, Engskov said in a statement in October. Inc. and Google Inc. have also been admonished by British lawmakers for using complex accounting methods to minimize tax liabilities in the U.K. while running large operations in the country.

Starbucks has more than 18,000 stores worldwide.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.