back to article Vodafone 'settled SECRET £57m Irish tax wrangle' back in 2009

Vodafone made a settlement potentially worth millions with HMRC to end a dispute about the amount of tax paid by one of the telco's Irish subsidiaries. The deal was outed after The Guardian said yesterday that accounts filed in Dublin showed the Irish firm, Vodafone Ireland Marketing Ltd (VIML), settling up with HMRC in 2009. …

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Anonymous Coward

>"Vodafone insisted it was fully compliant with existing tax laws"

That's not what the courts were ruling _before_ Hartnett gave Voda a (probably illegal) free pass to continue their tax avoidance scheme. No wonder they wanted to relocate everything to the UK.

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Re: >"Vodafone insisted it was fully compliant with existing tax laws"

...and he did so without consulting HMRC's internal legal experts, thus breaking even the Revenue's internal procedures. (Private Eye). According to Wikipedia he is "the most "wined and dined" civil servant in Britain, having been treated to corporate hospitality 107 times over a period of three years.". Now working for Deloitte and Touche.

Makes you proud.

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Re: >"Vodafone insisted it was fully compliant with existing tax laws"

Sigh.

Vodafone made money by selling phones in Germany to Germans. Then stashed the money in Luxembourg. The question then becomes, is this profit taxable in the UK? UK law (controlled foreign . companies, or CFC) said yes. EU law said no. EU law beats UK law: therefore not taxable in the UK.

So ,what was that settlement for £1.25 billion?

Well, everyone agrees that when you move those profits out of Luxembourg and into the UK in order to pay a dividend then UK tax is applicalbe. Full UK rate minus whatever has already been paid in foreign.

Wat did Vodafone do? Bring some of the profits back in order to pay a dividend. Thus paid UK tax. This is why the tax payments were over two years: because they brought the money back in stages.

There never was a £6 billion tax bill. Private Eye made it up entirely (yes, I have indeed had correspondence with Richard Brooks, the PE journo and it really is true. They calculated that tax bill as if the law was different. But the law ain't different).

There just wasn't a Voda deal with Hartnett or anyone else. There was just the application of the law as it is written.

Godlman Sachs? Yes, that was a deal. But Voda just not.

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"fully compliant with existing tax laws"

Yeah, and the NSA says it is fully compliant with the law too.

Doesn't mean it's right.

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Anonymous Coward

Re: "fully compliant with existing tax laws"

"Yeah, and the NSA says it is fully compliant with the law too.

Doesn't mean it's right."

Or true.

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Anonymous Coward

Money earned in the UK, taxes paid in Ireland even though they have 0 staff in the office.

What's wrong with this picture?

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So Vodafone pulled £57 million from the Irish tax man to give to the UK tax man?

I'm sure this went down like a lead balloon in Ireland, considering the state of Irish finances.

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Paris Hilton

All of this stuff seems headache inducing material.

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