Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

December 2012

Starbucks, Amazon and Google to face MPs over Tax

By Tarunkumar Singhal, Raman Jokhakar, Chartered Accountants
Reading Time 2 mins
fiogf49gjkf0d
MPs will quiz executives of Starbucks, Google and Amazon about how they have managed to pay only small amounts of tax in Britain while racking up billions of dollars worth of sales here.

The Public Accounts Committee (PAC), which is charged with monitoring government financial affairs, has invited the companies to give evidence amid mounting public and political concern about tax avoidance by big international companies.

Britain and Germany announced plans to push the Group of 20 economic powers to make multinational companies pay their “fair share” of taxes following reports of large firms exploiting loopholes to avoid taxes.

Starbucks had paid no corporation or income tax in the UK in the past three years.

The world’s biggest coffee chain paid only £8.6 million in total UK tax over 13 years during which it recorded sales of £3.1 billion.

(Source: The Economic Times dated 13-11-2012)

                                                        (Comment: Do we want a similar situation in our country?)
Download PDF

You May Also Like

Comprehensive Commentaries on FCRA 2010

IRS offshore programs produce $ 4.4 billion to date for nation’s taxpayers; offshore voluntary disclosure program reopens.