Starbucks brand reputation takes a hit after tax claims

Starbucks' brand reputation has plummeted since accusations hit the headlines last week that it has avoided paying tax. A Reuters investigation last week found the coffee chain had paid no UK corporation tax for three years, despite generating more than Pounds 1.2bn in revenue during that time. The news agency also found Starbucks had paid a tax total of just Pounds 8.6m since 1998 when it launched in the UK. The US company defended itself pointing to the Pounds 160m paid in "various taxes" including national insurance over the past three years but the revelations have hit the brand hard.