Starbucks: No UK Tax Paid Since 2009

Since opening its first coffee shop in the UK in 1998, Starbucks has racked up over £3bn in sales but shelled out just £8.6m in income taxes, according to new research.

In the latest example of tax avoidance by a multinational company, Reuters revealed that for the past three years the coffee chain reported a loss at its UK business.

As a result it paid no income tax in Britain - but over the same period, its sales hit £1.2bn.

By comparison, McDonald's paid a tax bill of over £80m on £3.6bn of UK sales, and KFC incurred taxes of £36m on sales worth £1.1bn.

There is no suggestion Starbucks has done anything illegal - according to accounts filed with Companies House, Starbucks has made no profit in the UK over the past 10 years.

But transcripts of investor and analyst calls over the period reveal the company has repeatedly said it is pleased with its UK business, which it described as "profitable".

The coffee chain has defended its actions, saying it pays the appropriate level of tax.

"Starbucks is totally committed to the UK, which continues to be one of our most important markets," a spokesperson said.

"We will continue to pay our fair share of taxes to the letter of the law in the UK as we always have.

"This is in keeping with our values as a business, holding ourselves to the highest ethical standards, be it in the way we source our coffee or pay our taxes."

Its overall tax rate globally last year was much higher than average at 31%.

But on overseas income, Starbucks paid an average tax rate of 13% - one of the lowest in the consumer goods sector.

The chief executive of the TaxPayers' Alliance, Matthew Sinclair, said companies exploit loopholes because the UK's tax system is too complicated.

He told Sky News: "There has been a succession of companies from high street names to internet giants who, thanks to the labyrinth of our tax system, appear to be paying much less in tax than many people would expect."

Starbucks, which has a market capitalisation of $40bn (£24.8bn), has a low UK tax rate because of a number of complicated corporate measures.

For example, its overseas operations have to pay a royalty fee - 6% of total sales - for the use of its "intellectual property", including its brand and business processes.

It also buys its coffee beans for its European divisions through a firm based in Lausanne in Switzerland, and the beans are shipped to Amsterdam to be roasted before they reach the UK.

As a result, Starbucks allocates some profits from its UK sales to these Dutch roasting and Swiss trading units.

Mr Sinclair called for a radical overhaul of Britain's tax system to make it simpler.

"Tinkering is not enough; we have one of the most complicated tax codes in the world which is an incredible burden to administer," he said.

"If Britain wants to remain competitive and ensure everyone pays their fair share then we need radical reform that restores legitimacy to our tax code and kick starts economic growth."

HM Revenue and Customs said it cannot comment on the tax affairs of individual businesses.

"We make sure that multinationals pay the right tax to the UK in accordance with UK tax law," it said in a statement.

"Our tax rules combat tax avoidance, and we employ specialist tax professionals to ensure that MNs play by the rules."

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Gold Fields Mine Threatens To Sack Strikers

One of the mining companies suffering amid the spread of industrial unrest in South Africa has issued an ultimatum to 23,500 staff to return to work or face the sack.

South African bullion producer Gold Fields, the world's fourth largest gold miner, has been among the companies facing union demands for better wages.

Disruption to output at its mines in the country has so far cost it 65,000 ounces of lost gold production worth almost £85m.

Its chief executive Nick Holland said: "The company has issued an ultimatum to all striking workers ... to present to work by no later than 1400 hours Thursday 18 October 2012 or face immediate dismissal."

The warning affects two thirds of the company's workforce.

It comes as scuffles continue throughout the country - with dozens of arrests made at Samancor's chrome mine amid reports of rubber bullets being fired by police.

Around 3,000 people were thought to be involved in the protest, which saw demonstrators clash with authorities.

The site is not far from Lonmin's Marikana platinum facility, where 44 people died in August.

Protests have also spread beyond the mining industry, with some 200,000 council workers due to stop working later this week over issues with pay.

The unrest has damaged confidence among investors and forced Standard & Poor's and Moody's to downgrade South Africa's credit rating.

About 80,000 mineworkers, representing 16% of the mining workforce, are currently striking across South Africa.

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Jimmy Savile: Labour Demands New Abuse Inquiry

David Cameron could order a public inquiry into the Jimmy Savile scandal once BBC and police investigations are concluded, Downing Street has indicated.

Number 10 insisted it was still an option after Labour led calls for the Government to set up an independent inquiry into the sex abuse allegations.

A spokesman said: "Nothing has been ruled out, but our view is it would be premature to prejudge the outcome of the two BBC inquiries and the police investigation."

The comments came after Culture Secretary Maria Miller appeared to rule out an independent inquiry as she expressed confidence that BBC chiefs were taking the claims "very seriously".

Labour leader Ed Miliband is insisting that the BBC's internal investigations are not enough and the victims deserve more.

The abuse allegations span six decades

He told Sky News on Tuesday: "I think we owe it to the victims to say 'look we are not going to have the institutions where the activities took place investigating themselves, we are going to have a separate inquiry across all those institutions'.

"I think they deserve truth and justice and I think that is the best way of getting to it."

He had earlier told ITV1's The Agenda: "These are horrific allegations. In order to do right by the victims I don't think the BBC can lead their own inquiry.

"We need a broad look at all the public institutions involved - the BBC, parts of the NHS and Broadmoor. This has got to be independent."

Labour want an independent inquiry that has the power to call for documents and summon witnesses and would look at Savile's activities at the BBC, Stoke Mandeville hospital and Broadmoor.

New BBC boss George Entwistle

Deputy Labour leader Harriet Harman also told Sky News on Tuesday that Savile's alleged victims would not be satisfied with the BBC investigating itself and insisted wider action was required.

"There was obviously a culture of silence which fermented a situation where more and more victims were able to be abused by Jimmy Savile," she said.

"Instead of just looking at the BBC, we need to look at those other organisations as well. Instead of a number of different inquiries, we need one inquiry to look at all these horrific allegations."

She added: "Until we have really got to the truth, then we can't ever be complacent that these sorts of things won't happen again."

Before Labour's demand, Ms Miller had rejected calls for an outside inquiry to restore the public's faith, warning it could hamper police investigations.

"In terms of a wider inquiry, we have a police investigation on-going at the moment," she said.

"Everybody would agree that it is really important that those individuals who have been victims know that that investigation can go on unfettered and that that should be our priority at this stage."

She cited the three separate internal investigations already launched by the BBC into the affair.

Police believe the DJ and television presenter's alleged catalogue of child sex abuse could have spanned six decades and included around 60 victims and are also investigating.

But former Met Police chief Sir Ian Blair has questioned the validity of a police investigation, given that Savile is no longer alive.

Appearing on Sky News, he said: "I don't quite know what this police inquiry is going to be into. They need to be taken seriously by the responsible authorities and when a man is dead, the police are not that person.

"It just seems to me that the police might be the right clearing house but this really is a matter for other authorities. Jimmy Savile is standing before a different tribunal now."

BBC director-general George Entwistle is due to appear before the Commons culture, media and sport select committee next week where he will face further questions about the affair.

Leeds North East MP Fabian Hamilton said his constituents, who turned out in their thousands to pay tribute to the broadcaster when he died, felt "betrayed and angry".

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Karadzic Denies Atrocities At War Crimes Trial

Former Bosnian Serb leader Radovan Karadzic has told a UN war crimes court he should have been rewarded for trying to stop the conflict in Yugoslavia rather than put on trial.

On the first day of his defence in The Hague, Karadzic said: "Instead of being accused for the events in our civil war I should have been rewarded for all the good things I have done.

"Namely, that I did everything in my human power to avoid the war, that I succeeded in reducing the suffering of all civilians, that the number of victims in our war was three to four times less than the numbers reported in public.

"I proclaimed numerous unilateral ceasefires and military containments and I stopped our army many times when they were close to victory."

Brought to court after his arrest on a Belgrade bus in 2008, the 67-year-old, is charged with masterminding the murder of nearly 8,000 Muslim men and boys by forces loyal to him in the eastern Bosnian enclave of Srebrenica in July 1995.

The massacre, when Bosnian Serb troops under the command of wartime general Ratko Mladic overran Dutch UN peacekeepers, was the worst atrocity committed on European soil since World War Two.

Over the space of a few days, thousands were systematically executed and dumped into mass graves in the area.

The remains of people thought to have been killed during the Bosnian war

Relatives of the Srebrenica victims watching proceedings on Bosnian TV reacted angrily to his speech,

Kada Hotic of the Mothers of Srebrenica association said: "He is trying to fool the world.

"He really reduced human suffering, he reduced the suffering of thousands of people by putting them in the ground. He ethnically cleansed many places."

Prosecutors say Karadzic, former Yugoslav president Slobodan Milosevic and Mladic acted together to "cleanse" Bosnian Muslims and Croats from Bosnia's Serb-claimed territories after the collapse of Yugoslavia in 1991.

Milosevic died midway through his own trial for genocide and war crimes in March 2006.

But Karadzic told the court that he never considered the possibility that there could be mass atrocities aimed at either displacing or wiping out the Bosnian Muslim and Croat populations.

"Neither I nor anyone I know could ever think there could be a genocide againt any people we consider to be the same as us - Serbs, although of a different confession," he said. 

Karadzic is also charged over his alleged role in the siege of the Bosnian capital Sarajevo between May 1992 and November 1995 in which 10,000 people died under terrifying sniper and artillery fire.

Karadzic was indicted in 1995 but was not arrested for 13 years

But he accused Muslims of faking the circumstances of two shellings of a marketplace in the Bosnian capital, in which more than 100 people were killed.

"Sarajevo is my city, and any story that we would shell Sarajevo without any reason is untrue," he said.

Wives and relatives of victims were looking on from the public gallery as he addressed the court.

Like Mladic, Karadzic has also been charged for his alleged role in taking hostage UN observers and peacekeepers to use them as human shields during a Nato bombing campaign against Bosnian Serb targets in May and June 1995.

Karadzic, who represented the Bosnian Serbs at talks aimed at ending the civil war, told the court "many incidents happened while I was abroad attending negotiations or meetings".

After being indicted by the International Criminal Tribunal for the former Yugoslavia (ICTY) in 1995, he spent 13 years on the run before being arrested in 2008 in Belgrade where he practised as a doctor of alternative medicine.

In his opening statement, he described himself as a "physician, a psychiatrist, a psychotherapist, group analyst and a literary man" as he began to read his statement to the court.

His trial began in October 2009 and prosecutors put their case against him between April 2010 and May this year.

Judges dropped one genocide count in June, saying there was not enough evidence to substantiate the charge for killings by Bosnian Serb forces in Bosnian towns from March to December 1992.

Genocide, the gravest crime in international humanitarian law, is the hardest to prove.

Karadzic, who has been allocated 300 hours for his defence, has said he will call 300 witnesses to testify on his behalf.

The names include Greek President Carolos Papoulias, who was Athens' foreign minister during the Bosnian war.

Karadzic has said Mr Papoulias' testimony could prove his innocence for the infamous shelling of Sarajevo's Markale market on February 5, 1994, in which 67 people died.

Meanwhile, the Yugoslavia war crimes tribunal began the trial of its last suspect in a separate courtroom.

Goran Hadzic, president of the self-proclaimed Republic of Serbian Krajina, is accused of the murder, torture and forcible deportation of ethnic Croats from 1992 to 1994.

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Stolen Paintings Include Picasso And Freud

Several paintings including works by Picasso, Matisse and Monet have been stolen from a Dutch museum in one of the largest heists in years.

Police said a total of seven paintings were taken from the Kunsthal museum in Rotterdam including Pablo Picasso's Tete d'Arlequin (1971) and Henri Matisse's La Liseuse and Blanc Et Jaune (1919).

Two pieces by Claude Monet - Waterloo Bridge, London (1901) and Charing Cross Bridge, London (1901) - were also stolen.

The thieves also made off with Paul Gauguin's Femme Devant Une Fenetre Ouverte, Dite La Fiancee (1888), Meyer de Haan's Autoportrait (circa 1889 - 91) and Woman With Eyes Closed (2002) by Lucian Freud.

The heist occurred during Monday night or Tuesday morning in Rotterdam.

The total value of the seven pieces has not been revealed but is said to be "considerable", according to Mariette Maaskant from the museum.

"There was a break-in during the night and a few paintings were taken that represent a considerable sum," Rotterdam police spokeswoman Patricia Wessels confirmed.

"A major investigation is under way and forensics are at the scene."

The museum, which opened a new exhibition a few days ago to celebrate its 20th anniversary, will be shut for the rest of the day.

Investigators are now reviewing CCTV footage and appealing for witnesses who might have seen the crime, which is believed to have taken place in the early hours of the morning.

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House Fire Deaths Leave Father 'Inconsolable'

A doctor who lost his wife and all but one of his five children in a suspected arson attack is "inconsolable", a colleague has said.

Dr Abdul Shakoor, who suffered minor injuries as he desperately tried to rescue his family from their Essex home, was seen escaping the inferno with a child in his arms, it has emerged.

The doctor is currently being treated at Broomfield hospital in Chelmsford after being moved there to be closer to his critically ill daughter - three-year-old Maheen, who is fighting for her life in a burns unit.

His wife Sabah Usmani, sons Sohaib, 11, and Rayan, six, and 12-year-old daughter Hira, died in their end-of-terrace house in Barn Mead, Harlow, in the early hours of Monday.

A Ford Focus was found blazing yards away from the house

A third son, Muneeb, nine, later died at the Princess Alexandra hospital, where Dr Shakoor worked and was also being treated until late last night. Police have not said which of the children he was able to bring outside.

One of Dr Shakoor's colleagues, Dr Purnami De Silva, who was leaving flowers near the family home, said: "It's so difficult to comprehend the gravity of what's gone on.

"As you would expect, he's inconsolable."

According to neighbours, Dr Shakoor had to be physically restrained from going back inside the property and police have said he "fought hard" to save his family.

Dr Shakoor with his wife, Sabah

Police, who have started a painstaking forensic examination of the house, are now investigating whether the family were not the intended targets of the attackers.

But they stressed it was an isolated incident and there was no evidence that a serial arsonist was involved. There had been no previous problems with racism in the area.

Dr Shakoor, who reportedly left from a first-floor window as flames engulfed the house, is said to be in "severe shock".

Witness reports suggest between one and four people were in the area at the time of the fire. Such sightings will form key lines of inquiry, police said.

A silver Ford Focus was found burning a short distance from the house when fire crews arrived at the address.

The vehicle was not connected to the family but that fire is also being treated as arson.

Among the flower tributes at the house, one message read: "RIP little angels and your special mummy xxx."

Lesley Lynn, headteacher at Abbotsweld Primary School where Sohaib, Rayan and Muneeb studied, said everybody had been left distraught by the "horrible tragedy".

She said: "They were intelligent and sociable with a good sense of humour, good at sports and much loved by everyone."

The Harlow Islamic Centre has described the family as "much-liked and respected".

Flowers have been left close to the scene

Detective Superintendent Rob Vinson, who is leading the investigation, said the local community could hold the answer to who was behind the attack.

He said: "Nobody expects such a catastrophic incident in their own neighbourhood."

Originally from Karachi, Pakistan, the couple had lived in Saudi Arabia, where the children were born, for more than a decade before moving to the UK.

Parvez Hamid, 43, and Safia Anwar, 38, said they had known the couple since they moved to Harlow and some of their children attended the nearby Abbotsweld Primary School together.

Mrs Anwar said: "They were a wonderful family. Their children were best friends with our own."

Neighbours raised the alarm after being woken in the early hours. It is thought some form of fuel may have been used to start the fire.

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Hulk Hogan Sues Gawker And Clem Over Sex Tape

Professional wrestler Hulk Hogan is taking legal action after a sex tape involving him and his best friend's wife was posted online.

Hogan said he had consensual sex with Heather Clem about six years ago in the home she shared with her husband Todd, but did not know he was being secretly recorded.

The video was posted on the online gossip site Gawker. Hogan is seeking $100m (£62m) in damages from the New York-based media company, which declined to comment on the case.

It is unclear who gave the video to Gawker, and Hogan is bringing separate legal actions against the website, and the Clems.

Hogan claimed the video caused "severe and irreparable injury which cannot be adequately compensated by monetary damages".

Hogan, 59, is seeking the rights to the video in both lawsuits.

Hogan, whose real name is Terry Bollea, wore a tight black T-shirt, black trousers and sunglasses as he stood outside of the federal court in Tampa, Florida, while his lawyers spoke to the media. He did not comment.

"Mr Hogan had a reasonable expectation of his privacy, just as all Americans have a reasonable expectation of their privacy in their bedrooms," said Charles Harder, a member of his legal team.

Hogan recently acknowledged on various TV talk shows that he had sex with Heather Clem while he was married to Linda Hogan. He said he had her husband's permission.

Hogan remained silent as his lawyer briefed the media in Tampa

In the tape, a "mystery man" - supposedly Clem - tells Hogan: "All right, listen. You guys do your thing."

Hogan replies "All right, cool." after which the mystery man says: "I'll be in my office if you need me."

It is not clear whether Hogan and Todd Clem, a radio DJ whose legal name is now Bubba the Love Sponge Clem, are still friends.

The Clems have since divorced, as have Hogan and his wife.

Stephen Diaco, a lawyer for Clem, said Hogan was the best man at the Clems' wedding and he is also a godfather to Bubba's child from a previous relationship.

"My hope is that these two can preserve their friendship," Mr Diaco said.

"I can't comment on the suit. This has caused harm to Bubba and he didn't release it, he didn't condone the release of it. He wants to find out who did that and he wants that person to be held accountable."

It is illegal in Florida to record someone without their permission.

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Hillsborough: New Inquests Move Step Closer

The Attorney General has paved the way for new inquests into the deaths of 96 football fans in the Hillsborough tragedy by applying for the verdicts of the original hearing to be quashed.

The move comes after a report into the 1989 disaster revealed a cover-up that attempted to shift the blame for the tragedy on to its victims.

Dominic Grieve told the House of Commons: "I believe that these deaths, arising as they do from a common chain of events, should all be considered afresh.

"However, before reaching any final view on the scope of the application, I want to give the families affected the opportunity to make any representations in respect of the family member or members they lost.

"I will therefore be in contact with each family seeking views."

Mr Grieve said any criminal proceedings emerging from the fallout of the Hillsborough Panel Report, which said many of the victims could have survived and scores of police statements were altered to prevent criticism of officers, could affect when the new inquests could take place.

The Independent Police Complaints Commission has said a "large number" of current and former officers will be investigated over their actions on the day of the tragedy and during the subsequent alleged cover-up.

Liverpool MP Steve Rotheram said the move "marks one of the biggest steps forward in the fight for justice for the families in 23 years".

"The undeniable fact is that the original inquest was unsound and this application, if successful, will mean that evidence will be able to be heard after the 3.15pm cut off imposed by the original Coroner in the 1989 inquests," he said.

"For the first time in over two decades, all the evidence can now be reviewed into the disaster and potentially a new verdict recorded on the death certificates of the deceased."

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Shot Malala: Duo Stopped By Hospital Security

By David Crabtree, Midlands Correspondent

Two people have been stopped from entering a ward where a teenager shot by the Taliban is being treated.

The pair - described by police as "well-wishers" - turned up at Birmingham's Queen Elizabeth Hospital overnight and made efforts to see Malala Yusufzai, 14, who arrived in the UK for treatment on Monday.

At first a hospital spokesman said he understood arrests had been made after people claiming to be family members tried to gain access.

But West Midlands Police later clarified that the two individuals posed no threat to the Pakistani schoolgirl.

A police spokesman said: "They were stopped in a public area of the hospital and questioned by police, who recorded their details and advised the pair that they would not be allowed to see her.

"No arrests were made and at no point was there any threat to Malala."

The shooting of the schoolgirl on a bus provoked outrage

The hospital's medical director Dr Dave Rosser said earlier that the hospital and police are "very comfortable" with security arrangements at the hospital.

Referring to the incident overnight, Dr Rosser said: "We don't believe there's any sort of threat to her personal security - we think it's probably people being over-curious."

Malala was shot on a bus in front of her friends last Tuesday after campaigning for the right to go to school.

She was saved by neurosurgeons in a Pakistani military hospital and has since been in intensive care.

Dr Rosser said medics in Birmingham have been "very pleased" with the teenager's progress and that she had a "comfortable" first night in the UK.

He added she has been showing "every sign of being just every bit as strong as we've been led to believe that she is".

Experts at the hospital were beginning to plan for reconstructive surgery, he added.

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Gary McKinnon: May Blocks Extradition To US

Long Wait Over Extradition Ruling

Updated: 12:47pm UK, Tuesday 16 October 2012

Computer hacker Gary McKinnon has been living under the threat of extradition and prosecution in the US for more than 10 years. Here is a summary of the key events in his case:

:: 2001-2002 Between February 1 2001 and March 19 2002, the Glasgow-born computer expert allegedly hacks into 97 US government computers from his home in north London.

He is accused of leaving 300 computers at US Naval Weapons Station Earle in New Jersey unusable immediately after the September 11 2001 terror attacks on America.

US prosecutors also allege he deleted files which shut down the US army's military district of Washington DC network of more than 2,000 computers for 24 hours.

Mr McKinnon later denies causing any damage and says he was only looking for files that would prove the existence of UFOs.

:: 2002 Between March 19 and August 8, Mr McKinnon is interviewed about his hacking by the UK's National Hi-Tech Crime Unit at the request of the US government.

On October 31, the District Court of New Jersey in the US issues a warrant for his arrest before Paul McNulty, the US attorney for the Eastern District of Virginia, says on November 12: "Mr McKinnon is charged with the biggest military computer hack of all time."

:: 2004 The US District Court of the Eastern District of Virginia issues another warrant for McKinnon's arrest on August 12 and, on October 7, the US government files a request for his extradition.

:: 2005 On March 31, a warrant for Mr McKinnon's arrest is issued by Bow Street Magistrates' Court and officers from Scotland Yard's extradition unit arrest him at his north London home on June 7.

:: 2006 Then-home secretary John Reid signs an order on July 4 for McKinnon to be extradited to the US.

:: 2007 Mr McKinnon loses an attempt to appeal against his extradition at the High Court on April 3.

:: 2008 The House of Lords, then Britain's highest court, dismisses a further appeal bid by the computer expert on July 30 and McKinnon - who is diagnosed as suffering from Asperger's syndrome, a form of autism, on August 25 - also loses his bid to get the European Court of Human Rights to stay the extradition on August 28.

Then-home secretary Jacqui Smith rejects a request from Mr McKinnon's legal team on September 13 to stop the extradition on the grounds of his Asperger's diagnosis.

:: 2009 In January, Mr McKinnon wins permission in the High Court to seek judicial review of Ms Smith's decision and, a month later, the Crown Prosecution Service (CPS) announces that it will not bring charges against him in Britain.

Mr McKinnon makes a bid at the High Court in July to force the Government into allowing a trial in the UK, challenging the CPS's refusal to sanction a trial in this country, but two High Court judges refuse to block his removal.

Then-Tory leader David Cameron joins the growing call for a review of extradition laws in July, saying McKinnon is "a vulnerable young man and I see no compassion in sending him thousands of miles away from his home and loved ones to face trial".

The following month, Mr McKinnon's mother Janis Sharp criticises the then-home secretary Alan Johnson for linking her son to the September 11 terror attacks and the deaths of nearly 3,000 US citizens.

In November, the Commons Home Affairs Select Committee calls for a "comprehensive review" of the controversial treaty under which Mr McKinnon could be sent for trial while Mr Johnson, as home secretary, rejects a last-ditch appeal for him to block the extradition, saying: "I have no general discretion."

:: 2010 Mr McKinnon's mother receives 173 votes when she stands against Jack Straw, who helped agree the extradition treaty with the US, in his Blackburn constituency at the general election in May.

Later that month, the new Home Secretary Theresa May gives campaigners a glimmer of hope by agreeing his case should be adjourned while medical evidence is considered.

Now Prime Minister, Mr Cameron discusses Mr McKinnon's case with US President Barack Obama in July, saying he hopes "a way through" can be found.

It also emerges through leaked documents in November that, as prime minister, Gordon Brown unsuccessfully proposed a deal to allow McKinnon to serve any prison sentence in Britain.

:: 2011 The Government should renegotiate the UK's extradition treaty with the US to ensure British citizens get the same protection as Americans, the Joint Committee on Human Rights (JCHR) says in June.

But in October, a long-awaited review of extradition arrangements by retired Court of Appeal judge Sir Scott Baker finds the current treaty between the US and the UK is both balanced and fair. Many MPs and campaigners urge the Government to change the Extradition Act anyway.

:: 2012 The High Court expresses concern in January over the length of time Mr McKinnon's case in taking and attempts to speed matters up by listing it for a hearing in July.

In March, Mr Cameron and Mr Obama agree to review the operation of the controversial extradition treaty, but do not mention any individual cases during talks at the White House.

On October 16, the Home Secretary announces she is blocking Mr McKinnon's extradition on health grounds.

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