Starbucks bullied into paying tax it doesn’t owe

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Starbucks has caved in to pressure from left wingers over their tax avoidance and have promised to “do more” on its tax in the UK.

Starbucks Tax Due

It’s really not

This is very disappointing because every single one of us – from the plebs right up to multi-national corporations – have a moral duty to demonstrate the utter stupidity and incompetence that is the UK and EU taxation system in the hope that one day the Chancellor of the Exchequer will realise that the only way to fix it is to burn all three volumes (yes, it’s that big) of the tax rule book and start again.

In the case of Starbucks – as with the left’s other favourite whipping boy, Vodafone – it’s EU rules on double taxation that allow them to get away with avoiding paying little or no tax in the UK.  The EU created the concept of a European company as one of the building blocks of its nationhood and has introduced several directives that allow holding companies or subsidiaries in low tax administrations to hoover up all the profits from other companies in their group to create a loss on paper and avoid paying tax.  Starbucks in the Netherlands receives all the profits from Starbucks in the UK where they pay the Dutch government’s 20% corporation tax instead of the UK’s 30%.  Vodafone operates a shell company in Luxembourg which receives the profits from (amongst others) Vodafone UK and pays Luxembourg’s 20% corporation tax.  Amazon and eBay are owned by holding companies in Luxembourg for the same reason.

All of this is perfectly legal under EU rules and there is nothing the Treasury or HMRC can do about it other than blow smoke and feed propaganda to left wing tax campaigners and anti-capitalists.  And the biggest irony of all is that the most vocal opponents of tax avoidance, the Guardian, operates a number of tax avoidance schemes itself – even the Guardian offices where millionaire socialist class warrior Polly Toynbee pontificates about the evils of capitalism for the half a year she doesn’t spend at her second home in Tuscany is owned by a tax avoidance company in the Cayman Islands.

If there was a Starbucks conveniently located in Telford I’d make a point of not going there as a personal protest at their caving in to hypocritical left wing bullies but we have about 400 Costa Coffee’s (who aren’t on the hit list) instead so I’ll just have to make do with moaning about it until someone uncovers who’s bankrolling UK Uncut.

4 comments

  1. Matt Davies (3 comments) says:

    Who is John Galt?

  2. PaulG (1 comments) says:

    You will be pleased to hear that i have used your excellent logo for my placard in tomorrows protest (40 towns!!) – many thanks. You have helped us stop SB from dodging any more tax!

    I’m not sure why you are happy to pay more tax so Starbucks can send theirs out of the country?

  3. wonkotsane (1115 comments) says:

    It’s not my logo, I nicked it off some other idiot who also thinks that forcing Starbucks to pay more tax that they don’t owe rather than take the stupidity out of the tax system is the answer. Good luck with your protest, it will make absolutely bugger all difference to my tax bill because the more money the British government gets, the more it spends. EU rules, the high tax burden and labyrinthine tax regulations are to blame for much of our economic woe and useful idiots like you who want higher taxes are making it worse.

  4. William Gruff (123 comments) says:

    ROTFFLMFARO @ these protestors. Be sure to take an unbreakable flask of hot Bovril and a hip flask of dark rum, and don’t expect to achieve anything worth writing about. Idiots. LMFAO. Honestly, how stupid can you get? There are countless thousands of worthwhile causes the fools could bother about yet they choose to upset themselves about something under market control. The clowns spout a lot of tosh about ‘democracy’ yet refuse to accept the will of the people when it conflicts with their insane ideology, and then they think they’ve shot you in head by shooting themselves in the foot in claiming misappropriation of ‘your’ logo. I really am laughing here; you’d have to invent this stuff if …

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