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Starbucks Protests

Coffee chain Starbucks has been hit by protests today over its tax arrangements despite announcing changes to its payments

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Calls for tax avoidance action

Activists who took part in a sit-in at a Starbucks in Conduit Street demanded the Government takes urgent radical action on tax avoidance, rather than cutting the welfare state, childcare benefits, maternity benefits and housing benefits while dismantling the NHS.

UK Uncut described today's protests as their biggest ever national day of action

Starbucks has given in to public outrage and agreed to pay a fairer share tax in the UK. The company cut income tax by paying fees to other parts of its global business, such as royalty payments for use of the brand.

This meant it was effectively making a loss and therefore did not have to pay any corporation tax. As a result, it has not broken any law. Starbucks says it's always organised its tax affairs "according to the letter of the law" and added "the emotion of the issue has taken us a bit by surprise".

A spokesperson for the company said the decision to increase its income tax payments ''was the right thing for us to do. We've heard that loud and clear from our customers. And today, we're taking the actions necessary to pay more corporation tax in the UK."

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