Starbucks’s retail arm gets £13.7m tax credit even as sales increase
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Starbucks' UK retail arm received a £13.7 million corporation tax credit despite a 6% increase in sales and the addition of over 90 stores in the year ending September. The credit is attributed to widening losses of £41.3 million, largely due to £40 million in royalty and license fees paid to its parent company. While sales rose to £556.3 million through price increases and new offerings, the Fair Tax Foundation criticized Starbucks for reporting losses despite growth, resulting in no corporation tax payment. Starbucks Emea, which collects royalty fees from across Europe, the Middle East and Africa, paid $20 million in corporation tax, but it was unclear how much of that would be paid in the UK. Starbucks maintains it is committed to paying all taxes due.
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AI-ExtractedStarbucks UK opened 92 more outlets during the year, taking the total to 1,304.
The company paid £40m in royalty and licence fees to its parent company.
Losses widened to £41.3m in the 12 months to the end of September.
Starbucks UK sales increased 6% and it added more than 90 stores.
Starbucks's UK retail arm received a £13.7m corporation tax credit last year.
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