Vodafone wins tax battle

7 Jul 2008

Vodafone has won a court case against the British government concerning its 1999 acquisition of Germany’s Mannesmann (the previous owner of cellco Vodafone Germany and fixed line operator Arcor) and the subsequent set up of a subsidiary in Luxembourg. The mobile operator had estimated liabilities at as much as GBP2.5 billion (USD 4.7 billion) should it lose the case, but the latest ruling stated it would be unlawful for UK corporation tax to be liable on earnings from the subsidiary. The Financial Times reports that The High Court has ordered Revenue & Customs to close the inquiry into Vodafone’s 2001 tax return after the ruling; the department has said it will appeal the court decision.

Germany, United Kingdom, Vodafone Germany, Vodafone Germany (old), Vodafone Group