Feeds

Vodafone dodges UK corporation tax bill - AGAIN

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

Security for virtualized datacentres

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
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.
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?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.