Vodafone pays £9.3bn in taxes

The Vodafone Group contributed a total of £9.3 billion in direct and indirect taxes to all the economies of countries it operates in, according to its country-by-country tax declaration report for 2014/15, ClassFMonline.com has gathered.

The amount is made up of £2.3 billion in direct taxes to governments in countries of the telecom firm’s operations, £1.3 billion in other direct non-taxation-based fees and levies payable to governments, and £5.7 billion in indirect tax contributions to national governments.

Updating its voluntary disclosure of the Group's taxation and total contribution to public finances to include financial information for the year ended 31 March, 2015, Vodafone, on Monday February 15, said it made “significant contributions to all the economies of the countries in which we operate as a major investor, taxpayer, employer and purchaser of local goods and services”.

The report provides an updated overview of the Group's total contribution to public finances in each of its countries of operation.

According to the report, in 2014/15, Vodafone contributed £5.5 billion less in cash to public finances in the Group's countries of operation compared to £14.8 billion in 2013/14.

Vodafone said the overall reduction in its contribution is mainly as a result of the sale of the Group's US interests during 2013/14. In the UK, Vodafone paid £320 million in direct taxes in 2014/15.

Vodafone is one of few multinational companies worldwide that make a voluntary disclosure on a country-by-country, 'actual cash paid' basis, including details and explanations of tax payments and key taxation matters.