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Starbucks boycott gaining momentum!

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What are these talks between Starbucks and HMRC about?

 

The amount a company must pay is set out.

 

Starbucks can either play 'straight' and pay the same rate as everyone else, or not.

 

What are they discussing it with HMRC for?

 

Its very simple really. The home company which can be based anywhere (e.g. a very low tax rate country) can charge the company in the uk 100% of its profits so it is making no uk profits for HMRC tax. The money gets shipped off to the home company where it is taxed at a lower rate. We are in an international agreement which means the money can't be taxed twice. its perfectly legal.

 

Personally I think revenue should be taxed instead of profits. They are using our national services and benefitting from them so they should help pay for them regardless of profits. If they aren't making a profit they can go take a running jump!

 

I think osborne wants to go for the lowest tax rates. Which just makes it a problem for other countries and solves nothing.

 

Can everyone tell I know none of the terms and nothing about economics:hihi:

 

I really really hope starbucks goes bust-minging coffee:gag:

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Isn't VAT a tax on revenue.

 

And anyhow, say a company has revenues for the year of £500 million but has business running costs for the year of say £450 million. How exactly are you going to tax that £450 million.

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Isn't VAT a tax on revenue.

 

And anyhow, say a company has revenues for the year of £500 million but has business running costs for the year of say £450 million. How exactly are you going to tax that £450 million.

 

VAT is primarily payable by consumers, not businesses.

 

That would be quite easy wouldn't? 2% of revenue is £10 million. If they're normal profits related tax bill is calculated as less than that, then they pay the £10 million.

If they really had the running costs you suggest then they made £50 million in profit and at 24% the tax due would have been £12 million. So the revenue tax doesn't matter.

If however they decide that their Luxembourg subsidiary will charge them £48 million for the use of a brand name thus reducing their UK profit to only £2 million and their tax bill to £480,000 then the revenue tax would kick in and they'd apparently be operating at a huge loss.

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Great lets want to see a business go bust and see 1000's of normal hardworking folk be out of a job.

 

So when are the pitch forks coming out for Amazon, clearly their tax arrangements are a little iffy to say the least. Will it be before Christmas or after once people have stocked up on cheap presents for their loved ones.

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Great lets want to see a business go bust and see 1000's of normal hardworking folk be out of a job.

 

So when are the pitch forks coming out for Amazon, clearly their tax arrangements are a little iffy to say the least. Will it be before Christmas or after once people have stocked up on cheap presents for their loved ones.

 

if starbucks dissapears another coffee shop will fill the void so theres no need to worry.

 

Bearing in mind they are clearly ripping us off why would we want them to remain open.

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if starbucks dissapears another coffee shop will fill the void so theres no need to worry.

 

Bearing in mind they are clearly ripping us off why would we want them to remain open.

 

In the short term it would mean considerable disruption to the people that work there.

 

Haven't they agreed that they will change their arrangements now and pay more tax?

 

PS - if you don't like the coffee, don't drink it. I think they make a reasonable cup.

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In the short term it would mean considerable disruption to the people that work there.

 

Haven't they agreed that they will change their arrangements now and pay more tax?

 

PS - if you don't like the coffee, don't drink it. I think they make a reasonable cup.

 

yes it would-I am thinking more long term

 

they have agreed to pay 10 million I think. Im guessing thats a relatively small amount but it will get them off the hook. Of course they will eventually minimise it again I am sure.

 

I don't go there because their coffee sucks:)

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Great lets want to see a business go bust and see 1000's of normal hardworking folk be out of a job.

 

So when are the pitch forks coming out for Amazon, clearly their tax arrangements are a little iffy to say the least. Will it be before Christmas or after once people have stocked up on cheap presents for their loved ones.

 

A few thousand people in Caliifornia may be out of a job in the near future.

 

The Fresh N' Easy grocery chain which is owned by British supermarket giant Tesco will close it's doors in the new year unless it starts to make a profit or finds a buyer.

 

Unlike other supermarkets it's work force is not unionized so I dont know what Fresh N' Easy pay their employees or what the benefits are in comparison to those paid by their competitors but it's possible that they may pay lower.

 

A few of Fresh N' Easy's employees were interviewed on the news last night.

Some of them seem to be far from well off and living from paycheck to paycheck

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Mmmmmm I love starbucks :love:

 

I wouldn't stop going there, no matter what they do!

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VAT is primarily payable by consumers, not businesses.

 

That would be quite easy wouldn't? 2% of revenue is £10 million. If they're normal profits related tax bill is calculated as less than that, then they pay the £10 million.

If they really had the running costs you suggest then they made £50 million in profit and at 24% the tax due would have been £12 million. So the revenue tax doesn't matter.

If however they decide that their Luxembourg subsidiary will charge them £48 million for the use of a brand name thus reducing their UK profit to only £2 million and their tax bill to £480,000 then the revenue tax would kick in and they'd apparently be operating at a huge loss.

 

So basically we would tax revenue but if the tax take on any profits going down the corporation tax route would be bigger will take that chunk of money instead.

 

What about a business that actually makes a loss for the year, would they still be required to pay tax on revenue. For example, let's say a Sheffield based business had revenues of £20 million but its been a tough year and they make a small loss of £150K, would it seem fair that the taxman send them a bill wanting a £400K payment, 2% of £20 million.

Edited by pb1977

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So basically we would tax revenue but if the tax take on any profits going down the corporation tax route would be bigger will take that chunk of money instead.

 

What about a business that actually makes a loss for the year, would they still be required to pay tax on revenue. For example, let's say a Sheffield based business had revenues of £20 million but its been a tough year and they make a small loss of £150K, would it seem fair that the taxman send them a bill wanting a £400K payment, 2% of £20 million.

 

It could be applied only to international businesses (by law), or to only businesses over a certain size...

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i used to go starbucks.... but then went to costa when the queue in starbucks was too long... since then stuck to costa, still expensive for what it is though!

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