US-based coffee giant Starbucks said Thursday that it will pay around £10 million in corporation tax in Britain in each of the next two years after lawmakers roasted the company for avoiding taxes.
Kris Engskov, the managing director of Starbucks UK, made the announcement in a speech in London amid rising public anger in austerity-hit Britain at multinationals that fail to pay enough tax.
“Today, I am announcing changes which will result in Starbucks paying higher corporation tax in the UK — above what is currently required by law,” Engskov said in the speech to the London Chamber of Commerce.
He said that in 2013 and 2014 Starbucks would not claim tax deductions for “royalties or payments related to our intercompany charges”.
“In addition, we are making a commitment that we will propose to pay a significant amount of corporation tax during 2013 and 2014 regardless of whether our company is profitable during these years,” Engskov said.
“We are still working through some of the calculations, but we believe we could pay or prepay somewhere in the range of £10 million ($16.1 million, 12.2 million euros) in each of the next two years in addition to the variety of taxes we already pay.”
Starbucks had previously confirmed that it did not pay any corporation taxes in Britain for the past three years on sales worth £400 million.
It was able to do so by paying fees to other areas of its business — such as “royalty payments” for the use of the brand — which resulted in the company posting a series of losses and not having to pay any corporation tax.
British finance minister George Osborne on Monday announced a campaign against “tax dodgers” and “cowboy advisers” worth £2 billion.
Also on Monday a parliamentary committee alleged that multinationals such as Starbucks, US online retailer Amazon and Internet search giant Google were involved in the “immoral” avoidance of tax.
Margaret Hodge, who chairs the committee, said: “Global companies with huge operations in the UK generating significant amounts of income are getting away with paying little or no corporation tax here.
“This is outrageous and an insult to British businesses and individuals who pay their fair share.”
Trump lashes out at Pelosi for going to Jordan to fix his Syria flub
President Donald Trump tweeted his anger about Speaker Nancey Pelosi (D-CA) taking a delegation of leaders to Jordan to meet with those working on Syria.
"Pelosi is now leading a delegation of 9, including Corrupt Adam Schiff, to Jordan to check out Syria. She should find out why Obama drew The Red Line In the Sand, & then did NOTHING, losing Syria & all respect. I did something, 58 missiles. One million died under Obama’s mistake!" Trump tweeted Sunday.
Vice President Mike Pence went to Turkey last week to attempt to negotiate a ceasefire, but what he ended up with was 120-hour freeze on bombing Kurds.
WATCH: Mike Pompeo goes dead silent when ABC corners him on Ukraine
Secretary of State Mike Pompeo appeared on "This Week" Sunday where he was faced with a question about chief of staff Mick Mulvaney's press conference Thursday.
During the press briefing, Mulvaney, who also serves as director of the Office of Management and Budget, confessed that Trump told him Ukraine corruption issues also had to do with the DNC server.
“That he also mentioned to me that the corruption related to the DNC server, absolutely,” said Mulvaney. “No question about it. That’s it and that’s why we held up the money.”
Pompeo said he wasn't going to answer any questions about hypotheticals, which he said host George Stephanopoulos was asking.
Hillary Clinton posts fake letter from JFK to mock Trump’s absurd one to Turkey
Former Secretary of State Hillary Clinton has taken up a new hobby of trolling President Donald Trump on Twitter.
The grandmother of three excelled in her sarcasm and stepped up her shade Sunday afternoon by releasing a fake letter from Former President John F. Kennedy to former Soviet Premier Nikita Khrushchev.
Read the fake letter and see the tweet below:
Dear Premier Khrushchev,
Don't be a d*ck, ok? Get your missiles out of Cuba. Everybody will say 'Yay! Khrushchev! You're the best!' But if you don't everybody will be like 'what an assh*le' and call your garbage country 'The Soviet Bunion.'