CFO Nick Read confirmed that British operator paid more than £360 million in “direct taxes” on £41 million profit
Vodafone has confirmed that it did not pay any corporation tax in the last financial year despite announcing earnings of £1.3 billion and operating profits of £41 million.
Chief financial officer Nick Read said the operator had paid £360 million in “direct taxes” but still did not make enough profit to justify paying corporation tax.
The operator has faced widespread criticism for not paying any corporation tax in its last three financial years but it did make payments through wholly-owned subsidiary Talkmobile of £5.2 million in 2012/13 and £2.5 million in 2011/12.
Speaking at a roundtable event following the announcement of Vodafone’s FY15 results, Read said he did not expect Vodafone’s situation to change “for some time.”
“We still have the legacy of the capital allowances, plus the significant debt we took on to buy spectrum in 3G and 4G, and the interest costs bearing on that, in a business that makes very low margins,” he explained.
“Effectively, we don’t make the profits to justify paying corporation taxes.”