British lawmakers have accused major multinational companies of aggressive tax avoidance, amid calls by the UK government for a global crackdown on firms which seek to evade tax.
In sometimes bitter exchanges at a parliamentary committee hearing, legislators questioned Starbucks, Google and Amazon about the amount they pay to
the UK government in taxation.
Lawmakers scoffed as Troy Alstead, Starbucks global chief financial officer, claimed that the fact the coffee giant had reported losses for all but one of the 15 years it has operated in the U.K. was down to poor performance and not an attempt minimise its taxes in Britain.
"You have run the business for 15 years and are losing money and you are carrying on investing here. It just doesn't ring true," said Margaret Hodge, head of parliament's Public Accounts Committee.
Alstead acknowledged to the panel that its taxable profits in the UK are calculated after royalties paid to its European headquarters in the Netherlands have been deducted. He said that Starbucks had a special tax arrangement with the Dutch government covering its headquarters, but declined to give details.
