How much do Starbucks really owe?

There have been a lot of people finding my blog by searching for “how much tax does Starbucks really owe” or variants thereof such as “who owes more Starbucks or Stemcor”.

I feel that they may have left my blog in disappointment, because I don’t actually give a figure. Well, I will now.

Firstly, I must explain my methodology so you don’t think I’ve just plucked the number out of the air.

I calculate tax avoidance (which is legal and immoral and illegal) based on an expectation gap basis. That usually means that I look at a company’s profits and multiply that by the prevailing ethical rate of corporation tax.

However, as we know, Starbucks have made losses in the UK so as to avoid tax. Therefore I resort to the ultimate test of what tax would be collected under a suitable GRAPIST, such as mine or one which is copied word-for-word from mine.

This piece of legislation calculates exactly the tax that would be due that you would expect. So, in effect, it arrives at the same answer but from exactly the opposite starting point.

Applying my GRAPIST, I calculate that Starbucks should have paid tax of approximately £1.3bn to date, and will owe £250,326,347 for 2011.

These figures have been verified by fully subscribed members of the JTN.

Stemcor, on the other hand, have paid exactly the right amount of tax using this basis. This has been independently verified by Margaret Hodge who appears to have used my methods too.

4 thoughts on “How much do Starbucks really owe?

  1. I am afraid I must find fault with your GRAPIST methodology. I have used my own tried and tested calculations, which I have devised and tested over tens of minutes of web based research, and according to my sums, Starbucks owe all of the money in the world.

  2. Of course, Starbucks *have* paid Corporation Tax all along, They paid it where their profits were reported. A lot of it in Luxembourg. By following the money trail, it is clear that the government of Luxembourg have squandered this money on hospitals and schools. The logical conclusion is that these Schools and Hospitals are morally, and legally (and illegally) owned by the British Government. I am urging William Hague to declare war on the Luxembourgers unless they let striving British families use them to the fullest extent.

    • Nonsense. Why should the UK have to collect the tax back? It is Starbucks debt, they must sort it out.

      Starbucks are obliged to return what they have stolen. As such, if they have to do it by hiring their own militia and waging war on Luxembourg, so be it.

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