AOL tax case delayed till October
A trial that examines the legitimacy of a tax loophole employed by AOL Time Warner has been delayed until October, due to a key witness being on maternity leave.
The troubled media behemoth has been exempt from paying VAT in the UK, because in 1997 it was classified by customs officials as an information provider, rather than a telecoms provider. The latter is taxable, the former not.
But fierce rival, Freeserve, has argued that AOL should be forced to pay the tax, claiming that AOL has saved £200m of VAT, so receiving an unfair advantage.