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"
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.
More about:
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn 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 resourceIn 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 resourceThe 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 resourceWith proposals for an Amazon tax on the table, how can the UK tax system catch up with the implications of the Fourth Industrial Revolution? Read More...
View articleGlobal corporations are under increasing scrutiny over how much corporation tax they pay. So who are the latest big names hitting the headlines over t...
View articleThe EU is deeply divided over how to increase the tax take from tech giants such as Google, Apple and Amazon, who have recently come under fire for be...
View articleTo avoid falling foul of HMRC's tax crackdown, small businesses now have to be much more vigilant when it comes to tax matters, and it's an ideal oppo...
View articleLaw firm warns that HMRC focus on entrepreneur’s relief could prompt increase in avoidance scheme usage Read More...
View articleDiverted profits tax revenue collected by HMRC in 2016-17 totalled £281m, leaping from £31m collected in the previous year, according to data released...
View articleBillions of pounds of infrastructure investment planned; but tax tinkering still looms following Philip Hammond's first Autumn Statement Read More...
View articleAs advisers prepare for another Autumn Statement, they and their clients hope to avoid the grip of more red tape Read More...
View article