A clause in the 1999 agreement with Deutsche Telecom means that £1.5bn of its £2.2bn net cash could be forced into an escrow account in case of tax liabilities.
The telecoms group has been criticised for not declaring the clause to shareholders, but responded by saying it had ‘no requirement’ to do so.
The clause was triggered late Friday after the group’s debt rating was downgraded to junk status by Moody’s. C&W claims that its auditor, KPMG, advised there was no reason to reveal details of the clause because a downgrade was considered a sufficiently remote possibility.
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