Starbucks pledges £20m corporation tax
After weeks of governmental, media and public pressure, Starbucks has announced it would start paying corporation tax in the UK.
The company announced it would pay £10m per year over the next two years to HMRC, whether it makes a profit or not.
In October, it was revealed the Starbucks paid just £8.6m in CT in the UK over a 14-year period, despite making a profit of £3bn and reported accounting losses where it was profitable.
Last month, Starbucks UK executives appeared before the Public Accounts Committee (PAC) and were accused of immorality by MPs.
However, PAC chair Margaret Hodge recently said she approved of the company's new decision to pay its tax, saying it was a "step in the right direction."
Yesterday, Starbucks UK's managing director Kris Engskov posted a public letter on the firm's website, announcing they would pay a higher rate of CT than required by law, regardless of profitability.