Occupy Starbucks and smell the hypocrisy

refuge from the cuts

Amazon makes $20 million on $9 billion of sales – and says no profit goes to a tax haven. Really? — Richard Murphy, tax consultant

While tax dodgers Amazon and Starbucks avoid millions in tax – 230 women are turned away from refuges every day because of the government’s cuts. — UK Uncut

[to Starbucks] You’re either running the business very badly or there’s a fiddle going on. — Austin Mitchell MP, member of Commons Public Accounts Committee

[to Starbucks] I just don’t believe any corporate entity would sustain losses for 15 years and stay in UK. — Margaret Hodge MP, chair of Commons Public Accounts Committee

[to Starbucks] How do you explain telling global investors you make profits yet file £33mn losses in UK? — Margaret Hodge MP, chair of Commons Public Accounts Committee

It may be ageing or mellowing on my part but I think Margaret Hodge is getting rather good at this Public Accounts Committee doodah. — Mark Thomas

Today Starbucks, Amazon and Google were hauled before the House of Commons Public Accounts Committee to explain their tax dodging activities.

• Starbucks wakes up and smells the stench of tax avoidance controversy
• Starbucks faces MPs over tax avoidance
• MPs slam Starbucks, Amazon and Google on tax
• Starbucks, Google and Amazon grilled over tax avoidance
• Starbucks, Amazon and Google accused of being ‘immoral’
• Starbucks, Amazon and Google grilled by MPs on tax

Together with Costa, Starbucks blights our town centres with coffee shops serving overpriced poor quality coffee. Starbucks dodges tax.

• Starbucks’ tax payment is ‘unfair’ say independent cafes
• Starbucks stands accused not only of serving rubbish coffee but dodging tax

Amazon locates it e-books in Luxembourg where VAT is only 3%, but in dealings with publishers, uses 20% VAT as starting point for negotiations. If you have a Kindle, you risk that without rhyme nor reason your books will be wiped off your Kindle and your account closed.

• Amazon makes UK publishers pay 20% VAT on e-book sales
• How safe are your e-books?

Google is the third member of the tax dodging trio.

For idealogical not sound economic reasons the ConDem government is slashing public spending. Were companies like Starbucks, Amazon and Google to pay their fair share of tax, there would be no excuse to slash public spending as their would be no budget deficit.

A Reuters investigation from October showing that since Starbucks opened its first store in the UK in 1998 it has made £3bn in sales but paid just £8.6m in income taxes.

What many multinational companies do, and there is nothing new here, is make a loss in a high tax country, and big profit in a low tax country.

There are many ways of doing this. For example buying services from one part of the company that is located in a low tax haven.

Starbucks operate through Holland, because the Dutch government give them concessionary low tax rate, but it cannot be disclosed.

On 8 December 2012, UK Uncut intend to occupy Starbucks to highlight their tax dodging activities and to link the loss of taxes with the savage cuts in services which are hitting the poor and disadvantaged, in particular women. They intend to turn Starbucks into refuges for the homeless and women who have been turned away from refuges because they are full.

I would not normally be seen dead in a Starbucks, but maybe I can make an exception for one day. It looks like it is going to be a fun day.

If you are a small business and you pay tax, then why are you drinking coffee in Starbucks who do not pay tax?

In their evidence to the House of Commons Select Committee, Starbucks claimed their UK operation was not profitable. If it is not profitable, then let us make it even less profitable by boycotting their coffee shops.

• CALL OUT! 8 Dec. Refuge from the cuts – target Starbucks!
• UK Uncut plans day of action against Starbucks

Tags: coffee, NotoCosta, Starbucks, tax