Monday, August 19 10:30:16
Irish corporate tax regime is back in the spotlight after it emerged that the UK's Vodafone made a multi-million pound settlement with the British taxman to resolve a dispute over an Irish subsidiary.
The arrangement involved Vodafone reclaiming E67m from the Irish government in tax that should have been paid in the UK, according to reports in the British business press this morning.
Vodafone Ireland Marketing reportedly collected hundreds of millions of pounds a year in royalty payments from joint ventures across the world between 2002 and 2007. It was also reportedly used to send more than E1bn worth of dividends to the low-tax jurisdiction of Luxembourg in this time.
Vodafone also reportedly moved senior marketing managers to Dublin to avoid paying UK tax on revenues from global royalties. In Ireland, corporation tax stands at 12.5pc.
The telecoms giant told the Guardian the Irish settlement had never been separately disclosed in its annual reports, and was unrelated to a £1.25bn payment to HM Revenue and Customs in 2010 to settle a high profile dispute over the use of a Luxembourg subsidiary.