Starbucks' British business siphoned £353million to its US arm - 15 times more than it paid in UK corporation tax, the coffee giant's accounts revealed today.
Critics have dubbed its tax arrangements 'as clear as a Frappuccino' - a murky brown iced coffee drink - as its bosses insisted claimed they paid over the UK rate.
The company's seven European business, based in London, paid £22.5million of corporation tax last year on £78.3million of profit.
The figure amounted to £7million more than in 2017, and came as the company struggles to regain trust over how much tax it is paying.
The tax paid represents an effective rate of 23.7 per cent, compared to the UK corporate tax rate of 19 per cent.
But Starbucks' accounts provoked fresh controversy after its European arm also handed its American parent a bumper £353million dividend – money that is not subject to tax.
The company said the huge payment was part of a policy to hand £20billion to its investors on Wall Street.
It comes after Starbucks was accused of tax avoidance in 2012 for paying just £8.6million of UK corporation tax over 14 years.
After a public outcry, the company shifted its European headquarters from Amsterdam to London and increased its contribution to the UK Treasury's coffers.
Overall, the European business yesterday reported a £78.3million profit after sales of £181million for the year to September 2018.
It was despite its UK coffee shop business recording a £17.2million loss, which Starbucks blamed on brutal conditions on Britain's high streets.
It has 1,000 shops in this country, with around 700 run by licensees who pay Starbucks to use its brand.
But despite the apparent increase in tax paid, campaigners poured scorn on the lack of transparency at the company.
Robert Palmer, executive director of Tax Justice UK, said: 'Starbucks' accounts are not broken down on a country by country level so it's almost impossible to work out what's going on as an outsider.
'We just don't have the transparency to see how these companies are moving their money around the world.'
Read more: Starbucks UK paid Britain £22.5million in tax last year - 15 times less than the £353 million it sent back home to US owner
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