Vodafone's tax principles and strategy
Tax laws are often unclear and subject to a broad range of interpretations, as discussed earlier in this report
When combined with the unavoidably complex financial affairs of large multinational companies, this can lead to uncertainty and, on occasion, unpredictable outcomes. Vodafone operates within a clearly defined governance framework on tax that is designed to provide certainty for all stakeholders with an interest in our tax affairs. We have a long-established Tax Strategy that is underpinned by our Tax Principles and supported by our Tax Risk Management Policy (first published in 2009) and includes our Tax Code of Conduct (first published in 2007). This Tax Policy is mandatory for all our local operating subsidiaries and any associated legal entities, and we encourage our joint ventures and associates to follow similar principals to those we have outlines.
Our tax governance framework is overseen by the Group Executive Committee (ExCo) as well as the Audit and Risk Committee of the Vodafone Group Plc Board, with key issues reviewed at least twice a year.
Vodafone's Tax Principles
We employ professionals who are responsible for our tax affairs in every country in which we operate.
Key components of our Tax Strategy
Tax value
To manage efficiently the tax cost to the Group of doing business, including the Group's cash taxes and effective tax rate, within the ambit of all applicable laws
Risk and reputation
To control and manage tax risks and the Group's reputation through appropriate policies, communication and robust defence
Business partnering
To be recognised as a vital business partner by our stakeholders and to facilitate the growth and development of the Group's business activities in a tax-efficient manner
Customer experience
To act, where possible, in meeting the above objectives in a way that will enhance our customers' experience
Influencing
To influence govermments and tax authorities constructively and positively in the interests of all our stakeholders
People
To develop and enhance our people professionally and personally as part of a world-class international tax team
Compliance
To ensure the integrity of all reported tax numbers and timely compliance with all relevant statutory tax obligations
Learn more about our contribution to economics
Tax and emerging markets
Vodafone's businesses in Africa are a very significant source of government revenue, infrastructure investment, employment and are widely recognised as a positive force for good by governments and civil society alike.
Vodafone, Luxembourg and 'tax havens'
Many governments choose to develop tax regimes that offer multinational companies some form of competitive advantage in order to attract inward investment.
Vodafone corporation tax
Governments seek to adjust their tax regimes to stimulate investment and encourage job creation.