Howard A Treesong wrote:My understanding was the Starbucks paid something but didn't fulfil the entire amount. Perhaps they are selling it as otherwise in the US.
That's closer to the truth.
Basically Starbucks, Google etc have structured their European operation so that their profit is actually made in the Rep Ireland, or Luxembourg in the case of Amazon.
Consequently they pay the rate of corporation tax in those countries, which 'coincidentally' charge a lower rate.
Starbucks chose to pay a certain amount to try and diffuse the situation, but, as a HMRC employed friend of mine so succinctly put it, we are supposed to tell them what to pay, not the other way round.
The estimated cost of this tax avoidance is so high that it makes benefit fraud look like pocket change, and I don't think it's overstating the case to say that if these companies paid what they should be paying, the quality of life, budget deficit and many other factors would be much smaller issues than they are now.
Still, at least these companies are being outed, allowing consumers to put pressure on them to do the right thing until the international community gets off its backside and sorts things properly.