VODAFONE’S £6 billion (€7.6 billion) acquisition of Spanish cable operator Ono has been marred by allegations of tax fraud.
An investigation has been launched into reports that a small group of staff at Ono traded international minutes via affiliate companies to avoid VAT payments.
The British telecommunications giant took over Ono in July of this year and is believed to have blocked all payouts to former Ono staff while investigations are under way. The former chairman, chief executive and chief financial officer of Ono had been primed to share around £50 million (€63.47 million) in bonuses following the takeover.
A Vodafone spokesperson confirmed that the company is looking into reports of tax fraud that allegedly took place before Ono was taken over.