Cable & Wireless announces that it has reached agreement with the Inland Revenue to settle the Group's outstanding UK Corporation Tax Affairs for the ten years up to 31 March 2001. This agreement involves the payment today by the Group of 380 million pounds (EUR 559.1 million) to the Inland Revenue in respect of all previously unsettled matters for this period.
On 13 January 2003 Cable & Wireless paid 1.5 billion pounds into escrow for the benefit of T-Mobile Holdings Limited, a subsidiary of Deutsche Telekom, pursuant to an obligation in a tax indemnity given to Deutsche Telekom by Cable & Wireless at the time of the disposal of One2One in October 1999. As a consequence of this settlement with the Inland Revenue the Company expects the release of the 1.5 billion pounds currently held in escrow shortly.
Richard Lapthorne, Chairman of Cable & Wireless, said "Establishing clarity over the Group's tax position was an essential element in our planning for the future financial shape of the Group. With the settlement in place and consequent anticipated release of funds under escrow we now expect to have a firm financial base for securing the future of the Company."
