In spite of more than £5 billion turnover last year, Vodafone has not paid any UK corporation tax this year. This has happened for second year in a row as the company admitted not paying the tax in 2011-12 also.

It, however, said that the UK market provided 2.5% of its overall sales. This year till March 2013, the company said that its investment into the UK infrastructure and interest payment deem it not liable to pay the corporation tax.

It emerged that the firm pays over £3 billion of tax in other countries. It is learnt that Vodafone has paid £300 million of interest during this year on loans that helped in funding the £6 billion investment to buy the 3G spectrum.

It has paid the government of the UK £802 million for the 4G spectrum which will be used by the firm for broadband services. Also, Vodafone has invested £900 million to be ready for the 4G launch. The company has said that it has remained integral in all the tax matters.

Other companies including Google, Starbucks and Amazon are facing criticism for their legal tax arrangements in the country. "Individuals and companies have legal obligations to pay tax; but those obligations do not extend to paying more than the amount legally required", stated Vodafone.