David Jetuah, Accountancy Age, Monday 26 July 2010 at 09:41:00

Telecoms giant Vodafone agrees to pay HM Revenue & Customs 1.25bn,drawing a line under long- running controlled foreign companies wrangle


Vodafone is to pay 1.25bn settlement to the taxman, bringing a long- runningcontrolled foreign companies dispute to a close.

The telecoms giant, had originally set aside 2.2bn in its accounts to coverthe potential costs of the 10-year legal battle, relating to how UK income isused in overseas divisions based in low-tax jurisdictions.

Vodafone has said it will spread the payment over five years, according totheDailyTelegraph.

George Osborne has pledged to review the CFC rules in moves to keepmultinationals from shifting their tax base out of the UK.

Further reading:

Vodafoneloses 2.2bn tax appeal battle

Vodafoneruling prolongs CFC confusion