Vodafone will continue to fight off efforts by HM Revenue & Customs to
impose a £2.5bn tax bill on the business.
Arun Sarin, Vodafone’s chief executive, told the FT that this
month’s ruling by the European Court of Justice on a case brought by Cadbury
Schweppes was ‘very helpful’ for the group’s dispute with tax authorities over
the tax treatment of a Vodafone subsidiary in Luxembourg.
Last week the ECJ said that placing subsidiaries in low tax jurisdictions
should be allowed as long as the subsidiary was conducting genuine economic
Vodafone is facing potential tax liabilities running into the billions
because of Luxembourg subsidiary, but the controlled foreign company ruling by
the ECJ will help Vodafone fight off the attentions of HMRC.
Speaking at a conference in New York Sarin said: ‘Obviously the Cadbury case
is a very helpful case for the Vodafone case that will be heard next year. We
are feeling good about what might happen with us next year in this particular
The company has put aside £2.5bn to pay the tax charge should it lose a case
that comes before the ECJ next year. A UK tax tribunal that adjudicated the case
last referred some of the issues to the European Court.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states