Starbucks brews up big tax breaks

Reuters have uncovered some interesting figures relating to Starbuck's UK operation - is it making a profit or not?

It would seem that Starbucks has been telling it's investors in the US one thing, and the UK tax authorities something different. Whilst stating that the UK is one of the company's most profitable countries, the firm's official finances state that the UK has recorded a loss in each of the last five years. Since starting in the UK 14 years ago, Starbucks has 'paid just £8.6m in corporation tax'.

There is lots of potential for an interesting class discussion on the ethics of this issue here. Reuters make no suggestions that Starbucks have broken any laws, but 'that doesn't mean to say it's right', says campaigner Richard Murphy from Tax Research UK .

Why not ask your students what they think of this issue? Maybe have a debate, getting students to argue both sides of this complicated issue. You could also look at the different stakeholders involved - particularly since, as a plc, Starbucks also has a duty to maximise the returns to it's shareholders.

This BBC article offers more analysis, and the Reuters Investigates video below will be excellent for introducing this story to your class.

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