Vodafone faces fresh £1bn tax avoidance allegations

Vodafone faces fresh £1bn tax avoidance allegations

Vodafone could have saved approximately £1bn in UK taxes over the last 16 years, reports Reuters, while the telco claims it has "acted with integrity"

AS MUCH AS £1BN in taxes – and perhaps more – could have been avoided by telecoms giant Vodafone.

The world’s largest mobile telephone business is alleged to have kept back payments due to the UK taxman over the past 16 years through legitimate accounting methods. Other European jurisdictions including Spain and Germany have taken billions, reports Reuters.

It has achieved that by accruing tax credits so it may not have to pay UK tax for the foreseeable future.

UK revenues have climbed, as it is reportedly one of the company’s strongest-performing markets. However, the telco has posted losses in the UK over the past three years.

“This is yet another tax scandal,” MP Margaret Hodge, chairwoman of the Public Accounts Committee – which scrutinises public expenditure and revenue-raising – told Reuters.

She added: “It may be legal, but it’s completely immoral. They make money out of Britain, and they should put money back into Britain.”

Vodafone said it was committed to acting with integrity and transparency in all tax matters, while also having a responsibility to shareholders to control tax costs.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource