Starbucks promises to pay more UK tax

Published on NewsOK Modified: December 6, 2012 at 10:13 am •  Published: December 6, 2012
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Starbucks, which also has been the target of demonstrations by the protest group U.K. Uncut, announced this week that it was reviewing its tax approach.

Engskov said the company was proposing "to pay a significant amount of corporation tax during 2013 and 2014 regardless of whether our company is profitable during these years."

He estimated that would amount to "somewhere in the range of 10 million pounds in each of the next two years."

Labour lawmaker Margaret Hodge, who chaired the parliamentary committee, said Starbucks' change of heart was proof that "people power works."

Earlier this week, U.K. Treasury chief George Osborne earmarked an extra 77 million pounds ($124 million) to clamp down on "offshore evasion and avoidance by wealthy individuals and by multinationals."