tag:blogger.com,1999:blog-3993498847203183398.post8548137931600907689..comments2024-03-28T09:19:27.451+00:00Comments on RevK<sup>®</sup>'s ramblings: Why are people campaigning to pay more for coffee?RevKhttp://www.blogger.com/profile/12369263214193333422noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-3993498847203183398.post-53408856929368140452012-12-11T15:05:11.507+00:002012-12-11T15:05:11.507+00:00Indeed, but I would be happier if the coverage was...Indeed, but I would be happier if the coverage was more balanced - lots and lots of companies move profits to reduce tax. If you want to boycott them you find who they are using google from your windows machine, or maybe not. At the end of the day the better approach would be to change the laws and tax systems not pick on just one of the companies that quite sensibly do this. Though, as you say, if people are not buying coffee it is less sensible.RevKhttps://www.blogger.com/profile/12369263214193333422noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-27463323733951751012012-12-11T14:55:19.511+00:002012-12-11T14:55:19.511+00:00My problem with the likes of Starbucks not paying ...My problem with the likes of Starbucks not paying tax is that it is unfair on the small, local businesses (who benefit the local economy more) since they don't have the same opportunity for avoiding tax. However, you are quite correct that there is nothing "wrong" (legally) with taking advantage of loopholes in order to reduce the tax bill. Starbucks have made a choice to avoid tax, it may well pay off for them; however I also think its right for the media to highlight what they are doing, so that the public is aware and can therefore make an informed choice to buy from a company who is paying UK taxes instead, if that is important to them. Obviously, now there has been a lot of publicity, Starbucks thinks that paying UK tax will pay off (think of it as a marketing expense to make the company look better to prospective customers), so a demonstration that avoiding tax isn't always the best way to increase profits.Steve Hillhttps://www.blogger.com/profile/09798286430189689578noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-51952070732356776012012-12-09T22:27:02.688+00:002012-12-09T22:27:02.688+00:00It's worth remembering that the cost of a prod...It's worth remembering that the cost of a product is determined by the market <br />not the cost of production.. you wouldn't expect starbucks to be cheaper than costa, because costa will reduce (or increase) their prices to match whatever starbucks do - unless one of them starts selling at below cost, and that isn't likely.<br /><br />Also, Costa in other countries will be doing *exactly* the same thing to another country. That's the way it works (surprised they haven't moved their HQ like Boots did).<br />Tony Hoylehttps://www.blogger.com/profile/06485210895681350152noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-28241568616630332272012-12-09T14:05:46.376+00:002012-12-09T14:05:46.376+00:00And then take from that the amount we have to subs...And then take from that the amount we have to subsidise their low paid workers in Tax credits, housing benefits, etc, to be able to surivive....Chad Hhttps://www.blogger.com/profile/06466797076721870606noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-35050370673851297452012-12-09T13:39:13.908+00:002012-12-09T13:39:13.908+00:00When a price is taxed the price may change, but no...When a price is taxed the price may change, but not simply increasing the whole amount of the tax. The price ends up at a new market level. Indeed, competing with other similar products the price may not even increase. This means tax like VAT comes from both customer and supplier.<br /><br />There is a lot of country specific tax that starbucks pay, including VAT, NI, rates, fuel duty, and so on. They are choosing where the final corp tax is paid but that does not mean no tax paid in the UK, far from it. They are minimising their tax bill.RevKhttps://www.blogger.com/profile/12369263214193333422noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-29685543662059712452012-12-09T13:36:30.662+00:002012-12-09T13:36:30.662+00:00Starbucks/A&A don't pay VAT, it's the ...Starbucks/A&A don't pay VAT, it's the customers that do!<br /><br />HMRC are still considering the legality of Starbucks previous corporation tax stance.<br /><br />The worry over this is at least in part due to these companies undercutting their (UK based) competitors, eg:<br /><br />Amazon vs John Lewis<br />Starbucks vs Costa Coffee<br /><br />Does Costa charge more for it's coffee than starbucks does? Nope. But if you buy in Costa, more of the money stays in the UK. It's rumoured that Starbucks revenue in the last couple of weeks is well down as people switch to Costa etc.<br />Joseph Heenanhttps://www.blogger.com/profile/09814744420039144545noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-40372320851305049422012-12-08T21:29:17.521+00:002012-12-08T21:29:17.521+00:00I have heard that also putting optional (*cough*) ...I have heard that also putting optional (*cough*) service charge on a meal gets you out of paying VAT on the optional component of the final bill; and NI, which doesn't seem to get charged even if you *do* declare the income, in my experience.Ben Cliffordhttps://www.blogger.com/profile/14671623393202560568noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-62929724730426312482012-12-08T21:26:41.607+00:002012-12-08T21:26:41.607+00:00better hope those spare savings aren't in an I...better hope those spare savings aren't in an ISABen Cliffordhttps://www.blogger.com/profile/14671623393202560568noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-30977983422930826752012-12-08T15:42:56.597+00:002012-12-08T15:42:56.597+00:00"Starbucks is bad - they don't pay the ri..."Starbucks is bad - they don't pay the right amount of tax": I wonder how many people who have worked in the service industry (waiters, bar staff etc etc) and who have received tips have failed to declare that as additional income to the taxman. That's actually tax evasion (as it is a legal requirement to declare it) and not tax avoidance (which Starbucks is doing - legally allowed, but can be seen as "morally wrong": but could be fixed if the MPs actually wanted to do something about it).Richy Bhttps://www.blogger.com/profile/11328244621821820978noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-10496550110105437922012-12-08T12:11:13.303+00:002012-12-08T12:11:13.303+00:00"Starbucks isn't coffee" - I'll ..."Starbucks isn't coffee" - I'll go along with that. Bloody foul stuff.NABhttps://www.blogger.com/profile/15645758112897112622noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-69684228293739236912012-12-08T11:51:17.486+00:002012-12-08T11:51:17.486+00:00Quite - being a shareholder is easy - I have a sha...Quite - being a shareholder is easy - I have a share in BT Group plc even!RevKhttps://www.blogger.com/profile/12369263214193333422noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-1455910683343650302012-12-08T11:48:10.746+00:002012-12-08T11:48:10.746+00:00I expect there are just as many UK based companies...I expect there are just as many UK based companies selling stuff in other countries but bringing the profits back here. I've no idea what their situation is, but for example ARM are uk based, but I bet all the CPUs using their licensed designs are made in china. Should they pay all their tax there then? Somehow I don't think that this complaint is meant to work both ways...<br /><br />People just like complaining.<br /><br />Not quite the same thing, but someone I know was complaining about the price of petrol, claiming that the oil companies were only interested in making huge profits for their "fatcat shareholders". So I said to him that he has several thousand pounds in spare savings, so why not become one of those fatcat shareholders himself if they are making such fantastic profits, that it would literally only take 5 minutes to buy shares! Apparently though i was just being stupid saying that as "ordinary people" can't do that. Hmm...John Burtonhttps://www.blogger.com/profile/07156658352563482506noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-8362283137029693392012-12-08T10:16:12.640+00:002012-12-08T10:16:12.640+00:00Richard Wiseman asked this a few days ago:
http:/...Richard Wiseman asked this a few days ago:<br /> http://richardwiseman.wordpress.com/2012/12/05/what-would-you-do/<br /><br />60% said they'd prefer the lower price/tax loophole.Deannahttps://www.blogger.com/profile/00039168200475889026noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-84400601967669574712012-12-08T10:06:15.609+00:002012-12-08T10:06:15.609+00:00Starbucks isn't coffee - I read somewhere (can...Starbucks isn't coffee - I read somewhere (can't provide a citation) that they open stores classed as any number of subtly different technical terms to get around council planning departments' possible objections. "It's not a coffee shop, it's a cake shop that sells coffee".<br /><br />However on a more serious note, the fact Starbucks have been open about exactly how they avoid paying tax has shocked lots of people - in particular the fact that they siphon money out of the UK in 'license fees' and, unfortunately, make their UK stores unprofitable as a result has angered sufficient people who know it's morally wrong but don't know that the fix is in law, not boycotting.Peter Hickshttps://www.blogger.com/profile/14408914295045633726noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-9913439580705069272012-12-08T10:06:01.513+00:002012-12-08T10:06:01.513+00:00Also since every multinational company will be doi...Also since every multinational company will be doing the same what's so special about Starbucks? I don't see protests outside apple stores or for that matter Costa Coffee.<br /><br />There are problems with the way things work now.. Eg. Smaller companies pay more tax than large ones, but the answer is to change the law now push for Starbucks to make voluntary contributions!Tony Hoylehttps://www.blogger.com/profile/06485210895681350152noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-73970275830829863382012-12-08T09:38:58.501+00:002012-12-08T09:38:58.501+00:00My thoughts exactly - it's not on Starbucks to...My thoughts exactly - it's not on Starbucks to decide to pay tax they don't technically owe, it's on the government to fix the tax laws.Pete Favellehttps://www.blogger.com/profile/06118087223604691014noreply@blogger.com