EC to examine BT tax breaks
Brussels has confirmed it will investigate a complaint that BT has been receiving illegal tax breaks from the UK government.
Link: £300m tax saving for BT
If the complaint – made by network provider Vtesse – is upheld by the European Commission, then BT could face a fine amounting to billions of pounds.
Vtesse said BT has paid £1bn less a year in business rates than other companies after agreeing a special deal with the Inland Revenue.
The agreement was made in the late 1990s, said Vtesse, when the dotcom boom was still in full swing.
It claims that BT is making savings of £1bn each year.
BT has denied the claims saying the agreement was ‘above board’.
And they claimed they pay £300m every year, ‘which probably makes us the biggest rates payer in the UK’.