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A masked demonstrator leaves a Starbucks coffee shop in central London December 8, 2012.
A masked demonstrator leaves a Starbucks coffee shop in central London December 8, 2012.
(Luke MacGregor/Reuters)

Why Starbucks’ move to London won’t help the tax man

Starbucks Corp. is moving its European headquarters from Amsterdam to London and the firm’s EMEA boss insists that the reason has nothing to do with tax. “The U.K. is a great place to do business,” said Kris Engskov who commented that Starbucks would end up paying more tax in the U.K. after the move. That sounds like a strange tax logic for a corporate relocation but the coffee shop chain was accused of immorality by a committee of U.K. parliamentarians in 2012 after a Reuters investigation revealed that Starbucks had paid only £8-million ($14.8-million) to the U.K. exchequer since 1998, thanks to the shifting of royalty profits to its Netherlands holding company.