Corporate sponsors of the London Olympics that could cash in and make hundreds of millions of pounds from sales and publicity linked to the Games have come under increased pressure to turn down tax exemptions that have been granted by the Government.
Samsung, one of the key sponsors of the London 2012 Olympic games were asked earlier today whether they had anything to add in regard to the tax exemptions and they responded to What Digital Camera magazine with the following statement:
‘No Samsung Electronics Company will be availing itself of the corporation tax exemption afforded under the terms of the London 2012 Olympic Games Tax Regulations 2010, nor has it ever intended to use this exemption.'
Other manufacturers that have so far come forward to formally announce that they will pay full corporation and income tax on their earnings from the Games include McDonald's and Coca-Cola.
Panasonic were also asked whether they had anything to add on the matter but were unable to comment.
We'll be updating this page as and when we hear from any other associated sponsors of the Games.
Panasonic has confirmed that it too will not be taking advantage of tax
breaks offered by the UK government as a sponsor of the London 2012
Olympics, and has now issued the following reply:
"It has been brought to the Company's attention that concerns
have been raised that Olympic sponsors are profiting from tax
concessions introduced by the UK Government as part of its arrangements
with the International Olympic Committee ("IOC").
Under its agreement with the IOC, Panasonic delivers goods and services to the London Organising Committee of the Olympic Games ("LOCOG") primarily through its local sales subsidiary in the UK, which does not benefit from any of the tax concessions introduced. To the extent that services are delivered directly to LOCOG by Panasonic Corporation the tax position in either the UK or Japan is not affected by the tax exemptions."