Starbucks climb down isn’t good for business

03 Dec

Starbucks’ move to voluntarily hand over more corporation tax in the UK sets a serious anti-business precedent.

Starbucks is making it’s climb down saying it is reviewing its tax position with HMRC, following publication of a scathing report by the Public Accounts Committee which was based on MPs’ recent grilling of executives from several multinational firms.

Should Starbucks pay one penny more in tax than they are lawfully required to, simply because of pressure from a committee of politicians, it sets a serious anti-business precedent.

A tax system which is based on ‘donations’ as a result of blistering attacks from MPs on a handful of high-profile companies, could deter foreign firms from investing in the UK.

In many ways, the whole saga flies in the face of George Osborne’s message that ‘Britain is open for business.’

By not legally mitigating its tax liabilities for its shareholders, the Starbucks board might be in breach of its fiduciary duty.

It’s the Government’s job to write the laws. Companies have a duty to work within the rules in an efficient manner.

Your comment

Your email address will not be published. Required fields are marked *

Financial Health Quiz

Discover your financial well-being with the Financial Health Quiz.

In just 2 minutes, assess your finances, get personalized results, and actionable steps – all for free.

Take the quiz

Get the latest from Nigel Green