TaxCorporate TaxBT faced with huge tax bill

BT faced with huge tax bill

BT could be handed a huge tax bill after the European Commission launched an in-depth investigation into business rate taxation in the UK's telecommunications sector.

Link: EC to examine BT tax breaks

The probe follows a complaint from Vtesse Networks, which claimed BT and Hull-based Kingston Communications receive preferential tax treatment.

A statement, issued by the Commission with the launch of the investigation, said the UK ‘applies a certain asset valuation method to BT and Kingston, while it applies other methods to their competitors’.

A Department of Trade and Industry investigation into the same issue is already underway, and a statement said it was confident the EC would find no grounds for complaint.

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