We all know the importance of investment in dynamic ICT markets. No investment: no new services, poor quality of service . . . As LTE is being rolled out and the conversation on 5G is gathering momentum,one would think the relationship between investment and taxes would be different from what is being reported as being paid by Vodafone:
During the 2013 financial year, in which the group reported pre-tax profits of £3.25 billion on revenues of £44.4 billion, Vodafone’s businesses around the world paid more than £4.2 billion in direct taxes to national governments.
The group also paid more than £3.2 billion in other non-taxation-based fees and levies.
Moreover, Vodafone made a total indirect tax contribution to national governments of £6.1 billion. Indirect contributions include such things as PAYE (pay as you earn) income tax, employee national insurance contributions as well as VAT.
It means that Vodafone made a total cumulative contribution to the public finances of more than £13.5 billion in its countries of operation.
For good measure, Vodafone said it also invested more than £6 billion in networks and services during the 12 months ended March.