7/23/2012 6:06:17 PM
Samsung waives Olympic tax break
Samsung has waived its right to a seven month tax break granted to Olympic sponsors, stating the company had never planned to use the exemption.
The Korean manufacturer’s decision was revealed after fellow Olympic 2012 corporate sponsors McDonalds and Coca Cola waived their rights to the seven month tax break after coming under pressure from campaigners. It has been estimated that if the tax breaks are taken by all the sponsors, the UK could lose £600m in unpaid taxes.
The tax break is part of a package of concessions demanded by the International Olympic Committee (IOC). These also include the provision of 500 chauffeur driven cars and 40,000 hotel rooms. The seven month tax breaks remove the requirement to pay corporation tax and income tax for ‘non resident’ companies and individuals who take part in ‘Games related activities’ or provide services to London 2012.
Samsung has been sponsoring the Olympics since 2007 after signing a deal with the IOC which will see it sponsor the Games until 2016. In a statement, a spokesperson for Samsung said: ‘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.'
Editor: Carol Millett