belfasttelegraph

Thursday 20 June 2013

Giants under-fire for tax practices

Starbucks Coffee

Google is one of a number of multi-nationals to come under fire for its UK tax practices.

Coffee giant Starbucks faced a customer boycott after it confessed to paying just £8.6m in corporation tax over 14 years, and nothing in the past three years.

It had instead directed money away in the form of royalty payments paid to a sister company in the Netherlands, as well as buying its coffee beans in Switzerland and on borrowing money from other group companies at higher interest rates. In response to the outcry, it then announced it would pay "a significant amount of tax during 2013 and 2014, regardless of whether the company is profitable".

However, Amazon and Google have said they will not follow Starbucks' lead of paying a voluntary contribution.

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