TaxCorporate TaxC&W settles £1.5bn tax dispute

C&W settles £1.5bn tax dispute

C&W yesterday reached an agreement with the Inland Revenue to pay £380m to settle tax liabilities in relation to a decade of acquiring and selling companies.

Link: UK investors to sue C&W and KPMG

The settlement includes the disputed tax liability of One2One to Deutche Telecom in 1999. Under the terms of the deal, C&W was forced to pick up the bill for future tax liabilities and outraged the City last December by accruing £1.5bn to this extend.

The bargain settlement revived C&W’s dire liquidity situation, settling most of analysts’ concerns. Following the news, C&W shares instantly surged from 13.25p to 73.25p.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

4m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter