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Vodafone to audit alleged tax fraud at Ono

2014-10-27 10:30:00| Telecompaper Headlines

(Telecompaper) Vodafone has launched an investigation into possible tax fraud at Ono, the Spanish broadband provider it acquired earlier this year for EUR 7.2 billion. According to a report in Spanish daily El Pais, Vodafone is looking into value-added tax declarations that Ono allegedly failed to make prior to the acquisition. The Spanish operator is said to have failed to declare value-added tax at a division with revenues of more than EUR 200 million from the sale of international calling minutes. "As soon as Vodafone became aware of the issue we instigated a forensic audit to investigate the facts relating to the alleged fraud," announced Vodafone, which refrained from making further comments because the matter is currently under investigation by Spanish tax authorities. In addition, Vodafone has blocked the pay out of bonuses to former Ono executives while the probe is underway, according to Spanish website El Confidencial. Ono's former chairman Jose Maria Castellano, CEO Rosalia Portela and CFO Carlos Sagasta were due more than EUR 65 million in bonuses after the takeover was completed in July. Vodafone initially said that Portela would keep her position to facilitate a "transition without disruption", but she ended up leaving the company in September.

Tags: tax fraud audit alleged

Category:Telecommunications

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