Feeds

Vodafone prevails in £2bn UK tax spat

HMRC to appeal

Secure remote control for conventional and virtual desktops

Vodafone has won a key ruling in its long-running battle with the UK government over a disputed £2.2bn tax bill.

A UK judge last week sided with the cellco's argument that Her Majesty's Revenue and Customs was not entitled under EU law to make it pay the difference in corporate tax between the UK and another European country with a lower tax rate.

In other words, the UK's Controlled Foreign Companies (CFC) Act, of 1988, designed to stamp out tax domicile-shopping, is illegal within the EU as it now stands.

Vodafone triggered the CFC tax bill by buying German rival Mannesmann in 2000, through a Luxembourg holding company.

According to accountancy firms, Mr Justice Evans-Lombe's ruling is a landmark judgment, affecting thousands of companies, which have paid hundreds of millions of pounds a year.

According to reports, the judge called on Parliament to spell out the tax consequences for companies that set up a controlled foreign company in another EU country.

With so much at stake, HMRC will appeal the ruling. ®

Top 5 reasons to deploy VMware with Tegile

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.