Starbucks’ Irish arm gains but avoids corporation tax

The Irish arm of coffee giant Starbucks brewed up impressive pre-tax profits of €745,707 in 2013 — but did not pay corporation tax.

Abridged accounts just filed by Ritea Ltd — formerly Starbucks Coffee Company (Ireland) Ltd — show that firm recorded a 3% increase in pre-tax profits from €721,327 to €745,707.

The firm enjoyed the increase in pre-tax profits in spite of gross profit going down by 17% from €2.49m to €2.06m in the 12 months to the end of September 2013.