Coffee bean accounting

Starbucks’ loss-making UK operation is currently everyone’s business: is the US coffee chain actually losing money or just effectively tax planning? Alex Hawkes reports

Starbucks UK hit the headlines after it emerged that it had been loss-making for more than a decade. That was despite telling its global investors that the UK was a thriving profit centre. The reason, apparently, was tax; cash came out of the UK company to Dutch and Swiss subsidiaries – for royalties, licensing and coffee – in an apparent attempt to reduce UK profits.

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