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Starbucks to open 1,500 more cafes in the US

December 5, 2012 RSS Feed Print

In the United Kingdom, Starbucks is also embroiled in a row over its taxes. The company has been doing business in Britain for 15 years and has 700 outlets but it has yet to record a profit — and therefore pay any taxes.

Starbucks says this is due to a complex process where its taxable profits in the U.K. are calculated after royalties paid to its European headquarters in the Netherlands have been deducted.

Following criticism in the U.K. parliament and a campaign by protest group U.K. Uncut, Starbucks said this week that it was reviewing its tax approach.

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AP reporters Jill Lawless and David Stringer contributed to this report from London

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Follow Candice Choi at www.twitter.com/candicechoi

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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