Reginal Thomas
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Reginal Thomas in reginal thomas,

Vodafone's Huge Tax Break

Vondafone Group Plc (VOD) and Verizon came to an agreement yesterday over Vodafone's offer to buy out of its 45% stake in their Verizon Wireless venture for $130 billion dollars. Vondafone is set to pay only $5 billion in taxes in the U.S. and nothing in the U.K.


How can Vodafone do this?


Well Vodafone is divesting its stake in Verizon wireless through its Dutch unit. Even though the company is headquartered in Newbury, England, the deal can still go through its holding company in the Netherlands where it gets an exemption rule leaving it with no taxes due there also. Talk about a win win!