The company, which has faced years of intense criticism for paying too little tax in the UK, paid ,5 26.5 million in royalties, almost five times the UK tax it paid, according to accounts filed with Companies House. The payout helped Starbucks, led by billionaire Howard Schultz, make $ 4.9 billion (3, 3.7 billion) in global profits over the same period. The UK division generated sales of £ 328 million from its 1,000 stores in the UK in the year to October 3, 2021, up from 3 243 million last year, when stores were temporarily closed during the pandemic lockdown. The Starbucks Coffee Company (UK) made «95.1 million ‘gross profit’ for the year, but after swallowing διο 78 million in ‘administrative expenses’, its pre-tax profit fell to 13 13.3 million, on which it paid tax 5.4 million £. A year earlier the company received tax credits of £ 4.4 million after recording a loss of £ 40.9 million before taxes. The British arm of Starbucks suffered cumulative losses after taxes of more than 100 100 million between 2010 and 2021, according to an analysis by the Guardian. It reported a profit in only five of the 12 years, but tax experts say it is unclear if they are a true reflection of the business. Paul Monaghan, managing director of the Fair Tax Foundation, said: other entities in the corporate group. “Numbers now have a certain predictability.” In 2012, it was revealed that Starbucks had paid just 8 8.6 million in taxes on 3 3 billion in sales in the UK since 1998, when it opened its first coffee shop in the UK. The company declined to comment on royalty payments or the reasons for its very low pre-tax profits in the UK. Separate accounts show that the UK-based European company Starbucks paid just $ 13 million in taxes last year, while paying the Seattle-based coffee giant’s parent company a $ 164 million dividend. Starbucks Europe, Middle East and Africa (EMEA) received royalty payments of $ 237 million a year through October 3. It made $ 190 million in pre-tax profits and paid $ 13.1 million in taxes. The company said the tax payment was low because “this dividend income has already been taxed in other jurisdictions before being recorded for accounting purposes as a profit in Starbucks EMEA Limited. “As income has already been taxed, it is exempt from additional corporate taxes in the United Kingdom.” Starbucks EMEA, which collects royalties from 43 countries, including the United Kingdom, has raised more than $ 2 trillion in equity. Starbucks Corporation, the US parent company, had operating income of $ 4.87 billion a year through October 3, 2021, with sales of $ 29 billion. Shultz, who transformed Starbucks from a Seattle-based chain of 11 stores that took over in 1986 into a global coffee empire, announced earlier this month that he was returning as interim CEO. Shultz, who has amassed a fortune of about $ 4 billion, is returning for a third term as CEO after Kevin Johnson retires.
