herald

Tuesday 17 October 2017

revenue

VODAFONE, the world's second largest mobile phone company, reclaimed €67m in tax paid to the Irish Government.

In 2009, the Vodafone Group made a massive settlement with UK authorities, linked to its Irish unit, it has emerged.

Britain's Guardian newspaper has reported that accounts filed with the Irish Company Registration Office (CRO) revealed the deal.

The paper revealed how Vodafone used an Irish subsidiary, Vodafone Ireland Marketing, to collect royalty payments from companies and joint ventures operating around the world.

It did this to take advantage of Ireland's 12.5pc corporation tax rate, compared to the 28pc rate in Britain in the period between 2008 and 2010.

DIVIDENDS

Vodafone set up a company in Leopardstown, Dublin, in 2007 that originally did not employ any staff but was reporting a turnover of €380m a year.

Its use of the company helped to send dividends of more than €1bn to the low tax jurisdiction of Luxembourg.

The payments included a final instalment due this year of €142m and came from profits made after taking advantage of Ireland's low corporation tax rates. The overall size of the settlement with Her Majesty's Revenue and Customs (HMRC) was not revealed.

However it involved Vodafone reclaiming €67m from the Irish Government in tax that should have been paid in the UK.

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