Profits rise at Starbucks UK as taxes decrease

The UK division of Starbucks has reported higher profits for the year ending September 27th, even as its tax payment to Britain decreased by as much as 28 per cent.

The US-listed coffee chain paid £8.1 million in tax, down from £11.4 million for the same period last year.

Profit before tax grew to £34.2 million for 2015 compared with £2 million for the same period last year, the company said.

Comparable sales for the year grew by 3.8 per cent, while the company’s operating margin was at 6.9 per cent, its highest since it began operations in Britain.

In October, EU antitrust commissioner Margrethe Vestager ruled that corporations such as Starbucks and Fiat Chrysler benefited from illegal tax deals with Dutch and Luxembourg authorities and ordered the Netherlands to recover €20 million to €30 million in back taxes from the US coffee shop chain.

Reuters