Wednesday, 24 November 2010

One tax system for us...

Private Eye is well worth it's subscription, which is more than you can say for tax free Vodafone.

Amplify’d from www.private-eye.co.uk




VODAFONE – DON’T PAY AS YOU GO


Wrong numbers: Protests against phone giant’s tax deal
HM Revenue & Customs spent nearly a decade arguing in court over the way Vodafone funnels its gargantuan income into a tax-free Luxembourg subsidiary – and heard the court of appeal reject Vodafone’s argument that British anti-tax avoidance laws were neutered by European law. So why did they then cave in?

HMRC accepted a mere fraction of what it was due. The “deal” followed discussions earlier this year between HMRC boss Dave Hartnett, Vodafone finance director Andy Halford (a member of George Osborne’s “business forum for competitiveness and tax”) and David Cruickshank, a tax avoidance guru from Deloitte, brought in bizarrely by Hartnett to act for Vodafone.

Following the talks HMRC officials (but not those who had investigated the case or knew anything about it) were told to go away and reverse-engineer a deal with Vodafone tax boss (and ex-HMRC director) John Connors that came up with a bill of £800m. That was the figure Halford and Cruickshank wanted to pay: it bore no relation to the legal position.

Read more at www.private-eye.co.uk

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