Starbucks shares close higher on tax announcement
Shares in Starbucks closed higher on the Nasdaq in New York yesterday (December 6th), after the company announced it would concede to pay its UK corporation tax.
There has been public outcry ever since it was revealed the ubiquitous coffee shop chain has paid very little of this duty in the 14 years it has been trading to British customers.
Starbucks paid just £8.6 million in corporation tax over this timeframe, despite UK sales of nearly £400 million in 2011.
The company said the British marketplace is one of the most competitive for espresso, which is why it struggles to make a profit.
Last night, managing director of the firm's UK operations Kris Engskov stated: "Starbucks will commit to paying a significant amount of tax during 2013 and 2014 regardless of whether the company is profitable during these years."
At close of play on Wall Street yesterday, Starbucks shares rose by 5.7 per cent to $53.70 per share.
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