More Olympic Shame

Olympic gains: Firms avoid £600m tax bill as Games venues treated like 'offshore havens'

“Corporate partners” like Coca-Cola, McDonald’s and Visa have a temporary exemption from corporation tax as “non-resident” companies

 

Olympic sponsors will avoid paying up to £600million in tax as venues will be treated like offshore havens during the Games, a report claims.

Under new Revenue and Customs rules ushered in as part of Team GB’s winning bid, “corporate partners” like Coca-Cola, McDonald’s and Visa have a temporary exemption from corporation tax as “non-resident” companies.

Although the multinationals have offices in the UK, their separate Olympic operations avoid paying tax from March 30 to November 8.

The new rules also mean foreign employees working for the firms do not have to pay income tax in the UK.

Campaigning group Ethical Consumer, which carried out the report, estimates the Government will lose out on £600million.

Author Tim Hunt said: “The real winners in the London Olympics are those companies who stand to make millions out of the greatest sporting event in the world.”