Feeds

Vodafone dodges UK corporation tax bill - AGAIN

World's smallest violin plays background music to carrier's debt pain

Choosing a cloud hosting partner with confidence

Mobile carrier Vodafone defended its financial arrangements today as it coughed to yet another legal dodge of UK corporation tax payments by asking Brits to have some sympathy over the huge debt mountain it is sitting on.

The multinational justified its actions by saying it was continuing to pump big sums of cash into Blighty by investing in building and upgrading networks and splashing out billions of pounds on UK radio spectrum licences - all of which meant the firm could enjoy hefty relief from the taxman.

Voda moaned that Britain has "one of the least-profitable mobile markets anywhere in the world" and added that it had only pulled in a modest profit during the company's 2012/13 financial year.

The result: zero pounds spent on corporation tax.

It said on its website under a heading entitled "Why does Vodafone pay little or no UK corporation tax?" that its less-than-£300m profit for the year was massively dwarfed by its interest costs on the substantial UK debt with which it is saddled – currently standing at an annual £600m-and-counting – which is paid out to banks and financial institutions, the company added.

Vodafone said that, over the last 12 months, it had splurged over £1bn on network upgrades in the country. On top of that, it paid the UK government a tidy £7bn for its radio spectrum licences.

"Taxation is not the only route used by governments to raise revenue from businesses," Vodafone said.

It went on to defend its biz practices by stating:

Vodafone does not enter into artificial arrangements – for example, by artificially diverting profits to minimise tax payments to the UK Exchequer – and will only adopt business structures that reflect genuine and substantive commercial and operational activities.

The company said that it paid £275m in direct UK taxes - a fall from £338m a year ago. Sales climbed to £5.15bn in Blighty, while Voda reported a slim £294m profit in the country.

It added that UK Controlled Foreign Company (CFC) rules introduced this year meant that some profits from Voda's Luxembourg subsidiary’s global financing activities would be taxable in Britain. ®

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
French 'terror law' declares WAR on the INTERNET itself, say digi-rights folks
Liberté, Égalité, Fraternité: Two out of three ain't bad
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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.
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?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.