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Vodafone (VOD +0.1%) has avoided paying a £1B in U.K. taxes over the past decade even...

  • Tuesday, June 26, 2012, 12:12 PM ET
    Vodafone (VOD +0.1%) has avoided paying a £1B in U.K. taxes over the past decade even though the company's revenues have soared, a Reuters investigation finds. Among the accounting techniques Vodafone uses to reduce its profit in Britain are inter-company loans, the interest payments on which are tax deductible.
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This news story has 3 comments:

  •  
    I once won a management simulation using precisely that tactic (amongst others). It was fun, I had one subsidiary actually borrowing cash, lending it to another subsidiary, and that one simply deposited it to earn interest.
    26 Jun 2012, 12:13 PM Reply Like
  •  
    Sounds like a contrivance and therefore not in the spirit of the law.
    26 Jun 2012, 01:25 PM Reply Like
  •  
    Another common tactic is using transfer pricing, though that one is usually covered by the law.
    26 Jun 2012, 01:29 PM Reply Like
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