Panasonic responds to What Digital Camera request regarding Olympic tax exemptions

Panasonic has confirmed that it will not be benefitting from tax breaks offered by the UK government as a sponsor of the London 2012 Olympics. In response to requests from WDC the company has 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.”

The statement comes in the wake of a similar reply from Samsung, which we published on Monday, that they too will not be taking advantage of the controversial tax breaks.

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.