For the second year in row, telecoms giant Vodafone has paid no corporation tax on its UK profits, which came to £294m in 2012.

In a bid to counter criticism of its tax affairs, Vodafone included a detailed analysis of its contribution to the Exchequer in a special section of the company's annual report, outlining what it calls 'our total contribution to public finances', published last week.

This shows Vodafone paid £338m in UK taxes such as VAT and stamp duty, as well as £21m non-tax charges such as licensing fees, and £523m in indirect taxes such as national insurance. The company also listed the £727m spent on its infrastructure and the 3G airwaves it bought in 2000 and for which it is still paying, and said it spent £8.1bn employing staff in Britain.

Tax breaks on Vodafone's infrastructure investment were among the items which helped keep its corporation tax bill at zero in the year to the end of March. Much of the spending went on new base station equipment to allow the operator to roll out its 4G mobile broadband network this summer.

Vodafone's annual report states: 'Individuals and companies have legal obligations to pay tax; but those obligations do not extend to paying more than the amount legally required. Companies also have a legal obligation to act in the interests of their shareholders.'

In total, Vodafone calculates it contributed more than £11.1bn in 2011/12 to the public finances in the countries in which it operates around the world. In its report, the company highlights an ongoing dispute with the Indian government relating to Vodafone's purchase of a company in India from Hutchison, which was held to be liable to tax.

Vodafone states: 'While we maintain that no tax is due on the 2007 acquisition, we have informed the Indian government that as a committed long-term investor in India, we are willing to explore the possibility of a mutually acceptable solution. The Indian government is currently considering its options.'