This comes from 38 Degrees but I am more than happy to endorse it:
The UK's winning Olympic bid included huge tax breaks for sponsors. As a result, massive multi-nationals like Coca-Cola, McDonald's and Adidas stand to make a tax-free fortune. Experts (I think they mean me) think the UK could be losing tens of millions.
As sponsors, these companies will be banking on loads of positive media exposure. Let's use that to our advantage, turn the tables, and roll out a massive petition demanding they pay their fair share. If the petition is big enough, and attracts enough media attention, it could be the first step in scaring these image-conscious companies into refusing their gold-plated tax break.
Can you add your name to the petition to the heads of these big companies demanding they turn down their Olympic tax dodge?
https://secure.38degrees.org.
The whole reason these gigantic companies are involved in the Olympics is for the image boost it'll provide. A tarnished brand is their PR team's worst nightmare. So what'll scare them most is our huge petition being covered in the media, and high-profile hand-ins at their flagship stores. Sources tell us a few of the sponsors may already be rattled. Let's show them their Olympic tax-dodge isn't worth the PR damage by piling into the petition and sharing it with friends.
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There is of course the small question of why the (yawn) Olympics are sponsored by the purveyors of junk food.
Remind me, where does the IOC live?
Richard,
I am very curious as to what you as the ‘expert’ are proposing to tax. These are global companies making an advertising investment in the London Olympics in the hope that will yield an increase in their global sales, of which the UK only makes a very small part, for some of these advertisers no more than a rounding error.
Are you suggesting that the UK should start taxing revenues and/or profits generated outside of the UK by non-UK resident companies like Coca-Cola or Adidas? That would be a first.
The tax would arise on profits attributable to UK branches exempted by this law
Presumably these branches are also booking the significant advertising expenses incurred in connection with the Games. It is very doubtful that they would show a taxable profit.
And you can bet that many recipients of corporate hospitality packages, some of which are being purchased for well in excess of £10,000 will not declaring them on their personal tax returns either – though quite how they are consistent with the provisions of the Bribery Act might be the first question that should be asked.
Could you point me in the direction of what the actual terms these companies have received are. The 38 degrees thing us a bit vague.
http://www.hmrc.gov.uk/2012games/tax-exemptions/index.htm
[…] 38 Degrees is campaigning on the Olympic tax exemptions. […]
I would have thought that under existing double taxation agreements almost everybody who is non-resident and working temporarily in the UK for a non-resident employer would be exempt anyway. Surely these exemptions merely sweep up a few unusual exceptions?
apparently while footballing in germany you must pay taxes even if non resident.
The article above appears to be about sponsoring companies and the people who work for them, not about the athletes themselves. Normally double taxation agreements don’t cover sportsmen and women, so I would expect footballers to pay taxes even if non-resident.
We have a general agreement that sports people do pay tax even if non-resident