Mobile telecoms giant Vodafone has sparked fresh controversy over its tax arrangements after it emerged that the company has claimed a staggering £17.67bn in tax losses, mostly from its Luxembourg operations. The move has helped bolster its half-year post-tax profits to £15.7bn.
Vodafone said the decision to claim the tax losses was triggered by the sale of its 45% stake in America’s Verizon Wireless, which it sold for £84bn.
The move is likely to draw criticism, as the company has paid no corporation tax in the UK over the past two years, and has been condemned for channelling revenues to low-tax Luxembourg.
Chief financial officer Andy Halford said: “It’s all perfectly above board.”
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