MVNO faces threat of dissolution and questions over why it made political donations despite not paying tax for three years
Ethnic calling MVNO Lyca has been threatened with dissolution by Companies House for not filing its accounts and is facing questions over how it was able to become the Tories third largest donor despite not paying corporation tax for the last three years.
Last month, Companies House warned it might dissolve Lyca because the firm had significantly overshot the deadline for filing its 2011 accounts.
Lyca reportedly persuaded the organisation to suspend the action in late March.
The MVNO claims the delay in filing is down to a thorough audit by Ernst & Young.
The firm has also become embroiled in the political parties donation row after the Guardian reported that the firm, the Conservative Party’s third biggest donor, had not paid any corporation tax for the last three years.
Lyca has donated £136,180 to the Conservatives this quarter, and £40,000 last quarter.
The firm has also reportedly held discussions with Ken Livingstone’s mayoral campaign about making a donation of £100,000, though no donation has taken place.
However, the firm has been criticised for making donations when it has paid no corporation tax since 2008.
Lyca said that it had not paid any corporation tax because it it has recorded a loss in each of the last three years, despite racking up revenues of £88 million in 2010 and £47 million in 2009.
Lyca said the losses were a result of its rapid expansion.