Starbucks Tax Row

 The American company Starbucks claims, that in the past 14 years it's only year that it made a profit was 1998, despite sales in England of £3bn. The company, valued at £25bn, is currently in talks with HM Revenue & Customs over increasing the profit margin, thus increasing the taxes they will be forced to pay.

Starbucks has only paid out £8.6m tax in the past 14 years that it has been opened in the UK, a mere 1% of their gross profit.

In my opinion, Starbucks should be looking to talk with HM Revenue & Customs on decreasing their profit margin, thus lowering the taxes. I mean, if they've only had one profitable year in the past 14 years they´ve been open, there must be something going wrong! Do they have a brain between them? Why would they even consider increasing profit margins if they don't have the income in the first place? More tax would just be another deficit and another potential loss in 2013. They should be looking at working with other companies such as Costa, to begin to consider working with them, or at least determining sectors of different counties so as they isn't as much competition and hopefully sales will rise.

Only time shall tell.
  

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9717647/Starbucks-first-to-cave-in-over-tax-row.html