Mobile telecoms firm Vodafone paid no UK corporation tax for a second year running, despite its revenues exceeding £5bn in Britain.
Vodafone, which owns and operates networks in over 30 countries, claimed that its investment in spectrum licenses and infrastructure in the UK - and interest payments - counted the firm out of corporation tax liabilities in the year to March 31 2013 - although it paid over £2.5bn of tax overseas.
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The firm made nearly £45bn in global revenues last year with underlying earnings of £13bn, and a global profit of more than £3bn. In Britain, it made an operating profit of £294m down from £402m a year ago, according to its annual report.
Computing was unable to get into contact with a Vodafone spokesperson but the company did defend its tax activities, stating that it made £24m in contributions for previous tax years.
Vodafone had also paid no tax in the UK in the 2011-2012 financial year, and in a new report on tax that was published alongside its annual report, the firm said:
"Individuals and companies have legal obligations to pay tax; but those obligations do not extend to paying more than the amount legally required".
The Berkshire based firm, is the latest in a long line of multinational companies including Google, Amazon, Apple and Starbucks to be found to be paying little or no tax despite huge incomes.
Vodafone chief executive Vittorio Colao's pay fell 30 per cent from £15.8m to £11m due to a drop in long-term share awards, while the company said it would freeze executives' basic pay during the year.
The company employs 14,000 of its 91,000 staff working in the UK.
