Vodafone pays no UK corporation tax for second year running despite earning £5 billion in sales
In its annual report published today the company revealed it made an operating profit of £294 million but paid no corporation tax
Friday 07 June 2013
Vodafone paid no UK corporation tax for the second year in a row, it was revealed today in its annual report.
The company had sales of £5 billion in Britain in the year to March and made an operating profit of £294 million, according to its results. But the mobile giant tried to head off a row by insisting critics should look at its total contribution through other taxes.
Vodafone was able to slash its corporation tax bill to zero because it legally claimed allowances for investment in infrastructure such as mobile spectrum and interest payments.
A spokesman told the Evening Standard: “If you want to look at the contribution a company makes, it is misleading and unhelpful to only look at one line — corporation tax. Let’s look at the whole contribution.”
The FTSE-100 giant, which employs 7,850 staff in Britain, said it contributed huge sums to the UK Exchequer — notably the £6 billion to the Treasury for 3G spectrum over a decade ago. It has just paid more than £800 million for new 4G spectrum in Britain.
But the revelation that Vodafone paid no UK corporation tax for a second year is bound to enrage some critics. Vodafone has been dogged by allegations of tax avoidance for years, with MPs criticising a deal with HM Revenue & Customs to settle tax claims of £1.25 billion.
HMRC said that claims the tax deal was over as much as £6 billion were “an urban myth”.
The company today published a 16-page defence of its tax activities, listing contributions made in the previous tax year. Despite the zero corporation tax bill in the UK, Vodafone paid over £2.5 billion in such tax in other countries.
Chief executive Vittorio Colao earned £11 million, down from £15.8 million a year earlier, as profits slumped because of writedowns in southern Europe.
New UK station Russia Today gives a very bizarre view of Britain
By performing as African Americans or Indians, white people get to play act a kind of 'imaginary liberation', writes Michael Mark Cohen
New essay by JK Rowling went live on Pottermore site this morning
Top Gear presenter is no stranger to foot-in-mouth controversy
- 1 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 2 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 3 Top Gear presenter Jeremy Clarkson criticised for beer tweet
- 4 The bubble bursts for Sodastream
- 5 If you think Russell Brand’s new book is confused, you should read what his critics have to say about it
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Top Gear presenter Jeremy Clarkson criticised for beer tweet
The bubble bursts for Sodastream
Russian politician says Apple CEO Tim Cook should be 'banned' from country after coming out as gay
'Santa Claus' dead: John Moore starred in Coca Cola and Morrisons adverts
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
£40000 - £65000 per annum + bonus + benefits + OT: Ampersand Consulting LLP: M...
£22800 - £33600 per annum: Randstad Education Manchester Secondary: The JobAt ...
£22800 - £33600 per annum: Randstad Education Manchester Secondary: Calling al...
£100 - £125 per day: Randstad Education Chelmsford: EYFS Teachers - East Essex...