Global telecom service provider, Vodafone has said that it has reached a settlement with HMRC over a dispute involving its Irish subsidiary.

The company has not announced the details of the settlement that was paid in 2009 but the arrangement includes reclaiming _67 million from the Irish government in tax that were supposed to be paid in the UK. The company's said that Irish settlement had never been reported separately in its annual reports. The payment was not linked to the £1.25 billion payment to HM Revenue and Customs in 2010 for settling dispute over the use of a Luxembourg subsidiary.

Vodafone Ireland Marketing had reportedly collected hundreds of millions of pounds royalty per year from joint ventures across the world between 2002 and 2007. The company also sent more than _1 billion worth of dividends to Luxembourg. Vodafone has shifted senior marketing managers to Dublin in order to avoid g UK tax on revenues from global royalties.

The company's corporation tax stands at 12.5 per cent. The details were revealed after it was known that the telecom giant did not pay any corporation tax in the UK for two years.