Feeds

Vodafone 'settled SECRET £57m Irish tax wrangle' back in 2009

Look, taxman, here's a few mil, now sod off will you?

Next gen security for virtualised datacentres

Vodafone made a settlement potentially worth millions with HMRC to end a dispute about the amount of tax paid by one of the telco's Irish subsidiaries.

The deal was outed after The Guardian said yesterday that accounts filed in Dublin showed the Irish firm, Vodafone Ireland Marketing Ltd (VIML), settling up with HMRC in 2009.

The size of the payment hasn't been verified, but the paper claimed that it involved Vodafone reclaiming £57m in tax from the Irish government that should have been paid in the UK.

The mobile operator said in a statement that the settlement "related to a number of technical factors regarding intergroup transfer pricing arrangements".

"Notably, throughout the period covered by the settlement, the profits of VIML had been taxed by the Irish authorities at the rate of 25 per cent," the firm claimed. "In accordance with the treaty between the UK and Ireland which prevents double taxation on the same income, the Irish government credited taxes previously paid by Vodafone and these were then paid to the UK Treasury as part of the overall settlement."

Vodafone Group claimed that its "brand activities" were no longer located in Ireland and had moved to the UK towards the end of 2011.

The group, which is the second largest mobile company in the world by revenue, hasn't paid any corporation tax in Britain for two years, although it paid £2.6bn of international taxes last year.

Like Amazon and Google, which have also been the subject of scrutiny over the amount of tax they pay in Blighty, Vodafone insisted it was fully compliant with existing tax laws.

The OECD suggested an action plan last month to totally shake up international taxation laws, including double taxation rules, many of which have been around since the 1920s. The plan, backed by the G20, would attempt to close off loopholes that have been exploited by multinationals to move profits into low tax jurisdictions - or just make them magically disappear. ®

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
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
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?