Managing tax by organizational means: the case of Vodafone

In many countries, continued austerity is forcing governments to take a tougher attitude towards tax avoidance. Through the example of Vodafone, a leading player in the global mobile telecommunications industry, this paper explores the relationship between industry participants and the amount of tax that they pay. The case study highlights how multi-national enterprises (MNEs) exploit differences between countries to reduce their taxes. If governments want to increase the amount of tax raised from MNEs, their focus should switch from complaining about such companies to changing the rules to which they are subject.