This is just such total bollocks:
The report is the latest stage of an attempt by Vodafone to get on the front foot against criticism of its tax affairs by campaign groups such as UK Uncut. It paid £1.25bn to settle a high-profile dispute with HMRC in 2010 over interpretation of the Controlled Foreign Companies legislation in relation to the company’s Luxembourg subsidiary, which acts as financier to its international operations, thus avoiding UK tax. The taxman alleged Vodafone owed up to £7bn.
It wasn’t £7 billion it was £6 billion. And the taxman never alleged that it was that sum at all. That was an invention by Richard Brooks at Private Eye. And Vodafone did not pay £1.25 billion to settle the dispute at all. What it did do was bring foreign earned profits into the UK in order to pay a dividend, something which all agree is subject to UK corporation tax.
The group has also been allowed to reduce its bill further because it shelled out for airwaves on which to broadcast its mobile signal.
It paid £802million earlier this year to gain the rights to use a superfast 4G mobile broadband.
Even though this money went straight into government coffers, the company is allowed to write off interest payments from loans it took out to make the purchase against its tax bill.
What? “Even though”?