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Monday, May 25, 2009

Vodafone loses £2.2 billion tax appeal

Vodafone has lost a tax case that relates to the company’s takeover of Germany’s Mannesman via nine years ago. Last year Vodafone won a High Court ruling after arguing that the UK’s Controlled Foreign Companies (CFC) tax legislation wasn’t compatible with European Union law; however HM Revenue & Customs went to the court of appeal and won. Vodafone, which took over Mannesman via its Luxembourg subsidiary, is now expected to take the case to the House of Lords. The case could cost Vodafone up to £2.2 billion in UK tax. [Sources: TotalTele.com; AccountancyAge.com]

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