Starbucks threatens to pull British investment over tax
Published on Jan 27, 2013 10:25 AM
LONDON (AFP) - Starbucks has threatened to suspend millions of pounds of investment in Britain over what it sees as unfair targeting by Prime Minister David Cameron over its tax affairs, according to the Sunday Telegraph.
The paper cited sources close to the coffee giant who said plans to invest £100 million (S$ 194.88 million) in new branches in Britain could be put on hold, claiming that the business was being singled out for "cheap shots".
Starbucks bosses reportedly demanded talks with Cameron after he said tax-avoiding companies must "wake up and smell the coffee" - comments seen as a clear swipe at the US chain which has been criticised for not paying enough corporation tax in Britain.
Speaking at the World Economic Forum in Davos on Thursday the prime minister said that corporations must "pay their fair share" of taxes as he pledged to use Britain's G8 chairmanship to counter tax avoidance.
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