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Pepsi Scandal

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Pepsi Scandal
the main issue at hand:
The company has paid £8.6m in corporation tax in its 14 years of trading in the UK and nothing in the last three years, despite UK sales of nearly £400m in 2011. only paid £8.5m in corporation tax since it launched in Britain in 1998 despite sales of £3bn, starbucks has reported a taxable profit only once in its 15 years of operating in the UK, often posting losses,but on the other hand it reported profitability and good perfomance to its investors. corporation tax in the uk is charged in respect of the company's accounting period, which is normally the 12-month period for which the company prepares its accounts.If your company or organisation is based in the UK, you'll have to pay Corporation Tax on all your taxable profits - wherever in the world those profits come from.If your company isn't based in the UK but operates in the UK - for example through an office or branch (known to HMRC as a 'permanent establishment') - you'll only have to pay Corporation Tax on any taxable profits arising from your UK activities.Companies operating in Europe can base themselves in, and take advantage of the tax rates of, any of the 27 EU nations. Starbucks, for example, chose The Netherlands and pays British tax only after transferring large sums to its Dutch headquarter how starbucks playes their game:
The company has told HMRC that it will change the way it offsets payments it makes to Dutch and Swiss divisions of the company, meaning it will create a profit in the UK and therefore pay tax.

Up until now, Starbucks has insisted that its UK business does not make a profit because of the high rents it pays for its shops.

The coffee chain also uses a number of perfectly legal mechanisms to mitigate its tax payments. It pays a 4.7pc licensing fee to the Netherlands for image rights and use of the company’s coffee technology

the british government was limited by the laws on paying of corporation tax,they did little on interferring in the

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