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.
Kris Engskov, UK managing director for Starbucks, met with officials at the prime minister’s Downing Street residence on Friday, amid concerns about the “politicisation” of the tax issue.
The multinational has come under mounting pressure after it was reported last year that it had paid just £8.6 million in British corporation tax since 1998, despite generating £3 billion in sales.
Starbucks confirmed that it did not pay any corporation taxes in Britain for the past three years on sales worth £400 million owing to fees paid to other parts of its business.