By Justin Madubuko, 30 August 2001 18:00
NEWS Freeserve's attempt to make AOL look like a tax dodger is continuing apace, with the French-owned ISP claiming the US behemoth has avoided paying £2.5m in VAT in the last month alone.
Freeserve has been sending out regular releases about the issue, claiming that a 1997 Customs & Excise ruling gives AOL an unfair competitive advantage.
Freeserve is currently challenging that ruling.
If it is successful, the bean counters reckon AOL could end up paying at least £30m more a year in VAT.
Freeserve's challenge is based on recent developments in European case law. It's lobbying the Treasury and Her Majesty's Customs & Excise to create a level VAT playing field.
Football aficionados may like to know that AOL has now saved enough cash over the past month to pay for David Beckham's services for 96 weeks.
For related news, see
AOL exploits £30m tax advantage over UK competitors
http://www.silicon.com/a46141
AOL job cut frenzy hits iPlanet
http://www.silicon.com/a46734
AOL slashes 1,200 jobs
http://www.silicon.com/a46721
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