McDonald's to decline London 2012 tax break.
Fast-food chain turns down tax exemption for non-UK Games sponsors as campaigners put pressure on others to do the same.
McDonald's has bowed to an online campaign and declined an Olympic tax break, just days before the start of the Games.
The move follows a story by Ethical Consumer magazine and pressure from the online campaign group 38 Degrees whose online petition has gathered more than 150,000 signatures. 38 Degrees said this morning: "It's working! McDonald's have said they won't be taking the tax break - but please sign the petition to keep pressure on the other sponsors."
Visa declined to comment on whether it would now refuse the tax break, while British Airways said the tax exemption did not apply to UK companies. Other foreign sponsors, which include Coca-Cola, were in the process of formulating their response, or could not be reached.
New tax rules ushered in as part of London's winning bid to host the Games mean the Olympic site in east London has become the world's latest, albeit temporary, tax haven. These rules mean that so-called partner organisations, such as Coca-Cola and Visa, could pay no tax at all on their earnings from the Games.
McDonald's made clear that the cost of turning down the break would be minimal, as revenue from the Games would be less than 0.1% of its annual sales in the UK. It said in a statement: "We will not be making any corporate income tax exemption claim with respect to any activity concerning our involvement with the London Olympic and Paralympic Games."
Richard Murphy from the Tax Justice Network said: "It is bound to cost the UK tens of millions of pounds to give tax concessions to all the large companies who are operating at the Olympic site. We're giving money away that we need to solve our debt crisis and to preserve essential public services."
The new legislation also exempts foreign nationals working on the games in the UK from paying income tax on any earnings. That includes journalists, representatives of official games bodies, judges and the athletes themselves.
Source: http://www.guardian.co.uk/business/2012/jul/18/mcdonalds-decline-london-2012-tax-break?newsfeed=true
OP: The fault probably lies with governments initially, bowing to the demands of sponsors in order to secure the Games. If they all together said 'no' the sponsors would probably go 'oh alright then'. This is a step in the right direction but then we shouldn't HAVE to campaign should we?
McDonald's has bowed to an online campaign and declined an Olympic tax break, just days before the start of the Games.
The move follows a story by Ethical Consumer magazine and pressure from the online campaign group 38 Degrees whose online petition has gathered more than 150,000 signatures. 38 Degrees said this morning: "It's working! McDonald's have said they won't be taking the tax break - but please sign the petition to keep pressure on the other sponsors."
Visa declined to comment on whether it would now refuse the tax break, while British Airways said the tax exemption did not apply to UK companies. Other foreign sponsors, which include Coca-Cola, were in the process of formulating their response, or could not be reached.
New tax rules ushered in as part of London's winning bid to host the Games mean the Olympic site in east London has become the world's latest, albeit temporary, tax haven. These rules mean that so-called partner organisations, such as Coca-Cola and Visa, could pay no tax at all on their earnings from the Games.
McDonald's made clear that the cost of turning down the break would be minimal, as revenue from the Games would be less than 0.1% of its annual sales in the UK. It said in a statement: "We will not be making any corporate income tax exemption claim with respect to any activity concerning our involvement with the London Olympic and Paralympic Games."
Richard Murphy from the Tax Justice Network said: "It is bound to cost the UK tens of millions of pounds to give tax concessions to all the large companies who are operating at the Olympic site. We're giving money away that we need to solve our debt crisis and to preserve essential public services."
The new legislation also exempts foreign nationals working on the games in the UK from paying income tax on any earnings. That includes journalists, representatives of official games bodies, judges and the athletes themselves.
Source: http://www.guardian.co.uk/business/2012/jul/18/mcdonalds-decline-london-2012-tax-break?newsfeed=true
OP: The fault probably lies with governments initially, bowing to the demands of sponsors in order to secure the Games. If they all together said 'no' the sponsors would probably go 'oh alright then'. This is a step in the right direction but then we shouldn't HAVE to campaign should we?