Vodafone paying no tax in UK despite consistent profits
Sydney: Mobile network operator Vodafone has paid no UK corporation tax for the second year in a row owing to investments in its country network and interest payments despite earning five billion sterling pounds as revenue.
According to News.com, Vodafone wiped out corporation tax liabilities but has paid 3 billion sterling pounds of tax overseas. However, Vodafone insisted being committed to ''integrity in all tax matters'', and said that it has paid 882 million sterling pounds in other taxes and contributions in UK.
The company did not pay taxes in the previous year 2011-12 claiming that UK contributed just 2.5 percent to its profits as its operational profits fell from 402 to 294 million sterling pounds a year. According to the report, Vodafone said that individuals and companies have legal obligations to pay tax, but those obligations do not extend to paying more than the amount legally required.
The company further said that it paid 300 million sterling pounds of interest during the year on loans to fund its 6 billion sterling pounds purchase of 3G spectrum in 2000-which it offset against last year's profits.
The report said that the company has paid 802 million sterling pounds for 4G spectrum which it will be using to launch its superfast mobile internet and also aims to increase its UK network spending to more than 900 million sterling pounds to prepare for the launch.
The company's spokesperson said that UK tax debate should not only look at corporation taxes but also consider the variety of ways in which industries make their contributions, the report added.
More from India
More from World
More from Sports
More from Entertaiment
- Cortana for Android available for public beta in US
- Xiaomi Redmi 2 Vs Redmi 2 Prime: Specification comparisons
- Middle class woes to continue, wholesale onion price shoots up to Rs 57 per kg
- Alleged land encroachment in Greater Noida: HC asks DM to decide representation in 3 months
- Watch: Review of Mahindra TUV300