News Articles

Monday, July 26, 2010

Vodafone to settle £1.25 billion tax dispute

VodafoneVodafone has agreed to pay £1.25 billion to HM Revenue & Customs, settling a tax dispute that dates back ten years. The dispute arose with Vodafone's Luxembourg business and HMRC's Controlled Foreign Companies (CFC) rules, which were intended to prevent UK businesses from setting up foreign businesses to avoid UK tax.

Vodafone will pay £800 million in the current financial year; the rest of the tax bill will be paid in instalments over the next five years. Vodafone had already set aside £2.2 billion after losing a Court of Appeal case last year.

In a statement that formed part of the company's quarterly results, Vodafone said it had "reached agreement that no further UK CFC tax liabilities will arise in the near future under current legislation" and that "no CFC liabilities are expected to arise as a consequence of the likely reforms of the UK CFC regime due to the facts established in this agreement."

Author: The Fonecast
Rate this article:
No rating

Categories: Networks and operators, NewsNumber of views: 3412

Tags: vodafone legal

Leave a comment

This form collects your name, email, IP address and content so that we can keep track of the comments placed on the website. For more info check our Privacy Policy and Terms Of Use where you will get more info on where, how and why we store your data.
Add comment


Twitter @TheFonecast RSS podcast feed
Find us on Facebook Subscribe free via iTunes

Archive Calendar

«June 2024»


Terms Of Use | Privacy Statement