April 15 Starbucks Corp said it decided
to move its European headquarters to the United Kingdom from the
Netherlands following criticism over its low tax payments in
Britain last year, The Times reported.
The world's largest coffee chain said the relocation was
primarily to get closer to Britain, its biggest and
fastest-growing market in Europe, the British daily reported,
quoting Starbucks' president of Europe, the Middle East and
Africa, Kris Engskov.
Starbucks was not immediately available for comment.
Senior executives will transfer to Starbucks' head office in
Chiswick, west London, although manufacturing jobs will remain
in Holland, The Times said.
Starbucks said it would pay more tax in Britain following
the relocation, which it expects to come into effect before the
end of the year, although globally its bill would remain
"relatively neutral," the paper said.
A panel of UK lawmakers last year had called on the
government to conduct a review of Britain's corporate income tax
regime to tackle what it said was a "serious problem of
Starbucks had said in June it would pay or pre-pay around 10
million pounds ($16.73 million) a year in taxes in 2013 and
2014, after it was revealed by Reuters that the company paid no
tax for the year to Sept. 30, 2012.
The Seattle, Washington-based group, which is struggling
with higher costs for milk and coffee, the two ingredients in
its popular lattes, has said that higher costs do not mean
customers would have to pay more.
"I want to resist raising prices in this environment,"
Howard Schultz, Starbucks' chairman and chief executive officer,
had said in March, referring to still cautious spending by many
($1 = 0.5977 British Pounds)
(Reporting by Sampad Patnaik in Bangalore; Editing by Lisa