Following a backlash from the news of its British tax avoidance, Starbucks has since reversed course and has agreed to pay £10 million annually in taxes in that country.

According to the New York Times, the agreement is a direct effort to deflect protests over its previous lack of contributions.

"Having listened to customers and to the British public, Starbucks in the U.K. will be making changes which will result in the company paying higher corporation tax in the U.K. — above what is currently required by law," the company said in a statement.

The company will avoid some tax deductions in the next two years, and will pay the taxes even if it doesn't generate a profit in that market.

Starbucks came under fire in the past few weeks because of its tax practices. Other U.S.-based companies, including Google and Amazon, have also been scrutinized and called "immoral." Protestors have even called for boycotts of the companies.

Throughout its 14-year-presence in Britain, Starbucks has paid a total of £8.6 million ($13.8 million) in corporate taxes.

According to the New York Times story, the company reduced its tax bill in that country by channeling revenue through other company subsidiaries in jurisdictions where tax rates are lower; for example in the Netherlands.

Read more about operations management.

Related Content

User Comments – Give us your opinion!
Products & Services

McAlister’s Menu

http://global.networldalliance.com/new/images/products/6365.png

6365/McAlister-s-Menu

AiO710 Digital Media Player

http://global.networldalliance.com/new/images/products/5157.png

5157/AiO710-Digital-Media-Player

Loyalty Automation Platform

http://global.networldalliance.com/new/images/products/6345.png

6345/Loyalty-Automation-Platform

Check Point

http://global.networldalliance.com/new/images/products/1843.png

1843/Check-Point

MP60S: Stand-alone Digital Signage Player

http://global.networldalliance.com/new/images/products/6693.png

6693/MP60S-Stand-alone-Digital-Signage-Player

The Kingston Fryer

http://global.networldalliance.com/new/images/products/6967.png

6967/The-Kingston-Fryer

Mobile & Online Ordering

http://global.networldalliance.com/new/images/products/5017.png

5017/Mobile-Online-Ordering

LG 47WL10MS-B

http://global.networldalliance.com/new/images/products/6435.png

6435/LG-47WL10MS-B

Presentation: Enhancing the In-Store Experience

http://global.networldalliance.com/new/images/products/enhancing_the_instore_exper.gif

3315/Presentation-Enhancing-the-In-Store-Experience

Total-Point of Sale

http://global.networldalliance.com/new/images/products/6535.png

6535/Total-Point-of-Sale

Media Kit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.