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.