Vodaphone billions unclear - still dodgers thoughTagged as:
Vodafone have been targeted throughout the country in a successful shut down of their high street stores.
The protest focussed on the £6 billion debt owed in tax, which was cut by unelected chancellor Osbourne. However, the £6 billion is a dubious figure which we should be careful to bandy about. There are however, many reasons still to shut them down.
For fiscal (financial) year 2010 Vodafone reported profit before taxation of £87 billion and in the same period 2009 it reported 4.2 billion. Yet it had a £56 million pound tax credit in 2010 and a £1.1 billion tax credit 2009.
Why is a company making 9 billion in profit, paying no tax and in fact getting a tax credit?
Bear in mind these are global figures. UK profit accounted for 7% of global profit in 2010.
According to Vodafone's annual report 2010, it provisioned against £2.2 billion "in respect of the potential UK corporation tax exposure" at 31 March 2010. The question is why a company would provision against £2.2 billion when the HMRC ultimately charged them only £1.25 billion?
Add to that the tax avoidance efforts of ploughing huge profits into Luxembourg in order to avoid tax and their cozying mission to India and there is enough reason to target them. All I would question is the £6 billion figure.
56% of pre-paid users in the UK switched contract in the last year. Why not add to the percentage?