Starbucks admit that they have not yet paid the millions pounds they promised they would pay to the government after a row over their tax.
Starbucks volunteers to pay £20 million in corporation tax but will it be enough to satisfy tax dodging campaigners?
Big brands Amazon, Starbucks and Google were questioned by MPs today on their entirely legal tax avoidance methods.
Starbucks UK confirmed to ITV News it posted a net loss of £30.4 million in the 2011-12 tax year, which it said was "an improvement" from the previous financial year.
A Starbucks spokeswoman said: “All full and part-time employees of Starbucks receive shares as part of their pay. Over half of the remuneration provided to our directors last year comprised the sale of vested equity shares.
"The reason for the increase is that the directors took the decision to sell some of their vested shares".
Starbucks posted a net annual loss of £30.4 million in the UK for the 12 months ending September 30, 2012, Sky News reported.
Starbucks Coffee (UK) Ltd posted a total turnover of £413.39 million in 2011-12, compared to £397.7 million in 2010-11, accounts filed with Companies House reportedly show.
The coffee chain reported a gross profit of £70.5 million, but taking into account £98.2 million in administrative losses, the loss for the 2011-12 tax year totalled £30.4 million.
Starbucks UK posted a net loss of £32.8 million for the tax year ending 2011, the report added.
Starbucks has paid £5 million in tax and will pay another £5 million later this year after a previous row.
It has promised to pay £20m with another £10m to come, according to a statement from the firm.
– Starbucks statement
Six months ago, we felt that our customers should not have to wait for us to become profitable before we started paying UK Corporation Tax.
We listened to our customers in December and so decided to forgo certain deductions which would make us liable to pay £10 million in Corporation Tax this year and a further £10 million in 2014.
We have now paid £5 million and will pay the remaining £5 million later this year.
The statement said: "We are also undertaking measures to make Starbucks profitable in the UK, such as relocating unprofitable stores to more cost effective locations, closing them where that is not possible and placing greater reliance on franchised and licensed stores.”
The statement comes in a response to a story published in the Telegraph.
– Starbucks spokesperson
We are on track to implement the unprecedented commitment to pay a significant amount of tax during 2013 and 2014.
Starbucks sources told me that they are working hard to get the tax deal done and promised to have it completed by the end of September.
– Anna Walker, spokeswoman for UK Uncut
As we said at the time of Starbucks announcement, their offer of £20m was simply a PR stunt, days before our protests targeted their stores across the country.
It's not up to companies to pick and choose when, if or how much tax they pay, its up to the government to force them to pay their fair share.
This government is making a political choice to cut legal aid, public services and the welfare state rather than force companies like Starbucks, Google, Amazon or Goldman Sachs to pay up.
Starbucks will use its coffee cups to encourage US politicians to strike a deal and prevent the American economy from going over the so-called 'fiscal cliff' in the New Year.
Its chief executive Howard Schultz is urging workers in around 120 Starbucks shops in the American capital Washington to write "come together" on customers' cups today and tomorrow.
The campaign aims to send a message to Senate politicians as government negotiations continue to avoid tax increases and huge spending cuts.
Boris Johnson has condemned "sneering" at Starbucks after the firm volunteered to pay millions of pounds more tax.
The London Mayor defended companies like the coffee chain who had been minimising their bills to the Exchequer, insisting they had a duty to shareholders.
Speaking on Sky News's Murnaghan programme, Mr Johnson admitted that Starbucks had got into a "hell of a mess".
But he said:
Imagine that you are the corporate finance director of one of these companies.
Your job is to look at the law as it stands. Your fiduciary duty to your shareholders is to minimise your tax exposure.
It is not to say, 'this looks pretty bad, we had better write a huge cheque to the Government ex-gratia and show that we are good citizens'.
Companies do not work like that.
Now that Starbucks has stepped up to the plate and announced they are going to be making this payment I think rather than everybody sneering at them people should welcome that.
My point is it is a bit unfair to bash the companies and then sneer at them when they try to do good.
Coffee chain Starbucks has been hit by protests at branches across the country over its tax arrangements, despite announcing changes to its payments.
One store in Vigo Street, central London, was occupied by protesters at 12pm and then temporarily closed.
Dozens of activists chanted "pay your tax" and waved placards and banners outside, shutting off the street to traffic under the gaze of the police.