Starbucks, the world’s biggest coffee-shop operator, pledged to build public trust in the UK after lawmakers criticized the firm for not paying any corporate tax for the last three years.
The firm is in talks with the UK Treasury over its tax affairs and will release details of the discussions this week, the Seattle-based company said yesterday in a statement. Starbucks has complied with all UK tax laws and is committed to the country for the long term, it said.
“We have listened to feedback from our customers and employees, and understand that to maintain and further build public trust we need to do more,” Starbucks said. “As part of this we are looking at our tax approach in the UK.”
Corporations including Starbucks, Amazon.com and Google have come under attack from British lawmakers and protesters for using complex accounting methods to minimize tax liabilities in the UK while running large operations in the country.
Starbucks paid no income taxes on revenue of 1.2 billion pounds ($1.94 billion) over the past three years by using intra-company transfers and loans to record a loss for its British business, Reuters reported Oct. 15, citing company filings.