PROTESTS are expected for a second weekend at Vodafone stores over allegations that the mobile phone giant avoided a £6bn tax bill.
Vodafone paid £1.25bn in tax following its takeover of Mannesmann in 2000 and subsequent long-running negotiations with HM Revenue & Customs.
A £2.2bn provision was made in Vodafone’s accounts to cover a potential liability, even though the company had not believed at the time it would face a liability. However, the provision was made due to the complexity of controlled foreign company tax and accounting rules.
Protestors, under the banner of UK Uncut, allege that Vodafone has avoided paying out an extra £6bn, reported The Guardian.
Both Vodafone and HMRC deny the claim.
A statement by Vodafone on its messageboard said: “Reports suggesting that we have an outstanding tax bill for £6 billion are incorrect, as this was never the case. In a statement from HMRC, the figure of £6 billion has been referred to as an ‘urban myth’.”
*Photo by Matthew Lloyd/Getty Images
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