Starbucks pays UK corporation tax!
Starbucks has paid £5m in UK corporation tax - its first such tax payment since 2009 - the company has announced.
The move follows pressure from politicians and campaigners, and an agreement by world leaders last week at the G8 to clamp down on corporate tax avoidance.
Starbucks has only reported taxable profit once in 15 years in the UK.
It announced late last year it would pay more corporation tax after public outcry and an investigation by MPs.
"We listened to our customers in December and so decided to forgo certain deductions which would make us liable to pay £10m in corporation tax this year and a further £10m in 2014," a Starbucks spokeswoman said.
As part of its tax affairs, the firm transferred some money to a Dutch sister company in royalty payments, bought coffee beans from Switzerland and paid high interest rates to borrow from other parts of the business.
During an investigation into corporate tax avoidance, the company's global chief financial officer told a committee of MPs last year that the tax deal struck with Dutch authorities was "an attractive reason" for basing operations there.
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