8 comments on “Most fun about Vodafone\’s taxes

  1. I’m not defending Ritchie, not by a long chalk,but could it not be that the accounts reflect some sort of off-shoring of profits? ie that turnover and profits are lower than they “should” be? I’m not saying that’s true, just questioning.

  2. Nick, no.

    That’s the consolidated accounts, so it includes any “offshore” subsidiaries.

  3. Reading those Accounts makes me glad I deal only with very small private companies.

    Note 6, on the taxes, seems to suggest that for 2012 company tax is payable only to foreign governments.

  4. Jeff: that is indeed the case. Tax is paid worldwide by the group at a rate of more than 26% of net profit – but none of this is paid in the UK.

    The fact that worldwide tax is paid above 26% is unsurprising, given that Indian corporation tax is 30% and US Federal corporate tax is 34%. The fact that no tax at all is paid in the UK is perhaps more surprising.

    (if Richie were a real investigative reporter rather than a blowhard, he’d dig Vodafone UK Limited’s accounts up from Companies House and work out quite how the hell they’ve managed to avoid making any kind of taxable profit).

  5. @ john b
    I don’t normally defend Murphy but he can’t dig out Vodafone UK Ltd’s accounts from Companies House before they are filed. The 2010/11 accounts show a relatively small profit of £5.9m and a tax charge. So the answer as to why Vodafone plc paid no UK tax is presumably group relief in respect of a few billions of losses carried forward from previous years (something Murphy thinks should not be allowed).

  6. The point is, the gbp5m profit is clearly bollocks -well, either that or Vodafone UK are too incompetent to live. Assuming, as is probable, that they aren’t, they’re doing something cute to ensure profits are massively underreported.

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