Feeds

Vodafone prevails in £2bn UK tax spat

HMRC to appeal

Boost IT visibility and business value

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. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.