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 subsiduaries 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.
Key components of our Tax Strategy
The areas below form the foundation of our Tax Strategy:
Learn more about our contribution to economics
Employment and skills development and are widely recognised as a positive force for good by governments and civil society alike.
Many governments choose to develop tax regimes that offer multinational companies some form of competitive advantage in order to attract inward investment.
Governments seek to adjust their tax regimes to stimulate investment and encourage job creation.