LONDON (Reuters (LSE: TRIL.L - news) ) - Mobile phone group Vodafone (LSE: VOD.L - news) <VOD.L> on Friday won a test-case tax battle which means it does not have to pay extra corporation tax to the government on its Luxembourg-based subsidiary.

Mr Justice Edward Evans-Lombe ruled in Vodafone's favour in the High Court battle which could save the mobile phone group billions of pounds.

Vodafone had made a provision of 2.2 billion pounds in case it lost the case.

The government can appeal the decision.

(Reporting by Mark Potter, Editing by Myles Neligan)