Brown downplays Olympic VAT bill

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anyone know what other country's governments did about any taxes due, when they hosted the games?

Whatever the outcome the building cost estimates were understated by the VAT amount (17.5% presumably).

More deception from the Government.

Shame this has come out this week - the Panorama investigation is the hot news this week - we could have saved this for next week.

Especially as they are blaming the EU and the last Olympics were in an EU country. Couldn't they have just asked the Greeks what they did.

Kevin

I think the Bliar Government were very happy to support the bid and get credit for supporting it - but were probably surprised when the UK was awarded the games. I can't understand why they (the IOC) let us have them, given our poor record with Government organised infrastructure, the outspoken Mayor of London and the security risks of holding the event here.

I didn't think I was paying for it - sounds like I may be paying something, sometime, somehow.

Am I missing something here? Why can't the company that is paying for the building work register for VAT? Then they would be able to claim the whole thing back.

Adam

Can't the government just give an amount back to the organisers which just happens to be similar to the amount of extra money that they receive in VAT returns?

Don't we then have unfair Government subsidies under EU rules?

Doesn't the Olympics already get some money from governmental organisations? If you didn't associate or link the two sets of money isn't this just the same as providing more money for it? Obviously I don't know the EU rules, but it would be interesting to know what they are.

But it wont be the building companies paying the vat, presumabley the British Olympic Committee will ultimately be paying the vat. I assume that ticket sales will never cover the costs anyway so you can't just pass it on to the end user.

Kevin

So can't the British Olympic Committee register for VAT?

It's 100% sure that the ticket sales will not cover the costs: that's what London council tax payers are for. But that shouldn't stop them claiming the VAT back, should it? There is, AFAIAA, no requirement that you have to pay more VAT than you claim back.

Adam

The government will simply be repaying itself, who cares?

That logic only works if the government were paying the whole bill, but they are not. The funding provided from council tax and the lottery will come from Londoners and lottery ticket buyers and the VAT portion of that spending head straight to the government's coffers.

He's certainly right about it not being an issue for the overall bill. The overall bill will go so massively over budget that a quarter of a billion VAT bill here or there will make precious little difference.

Adam

And at least some of that VAT might actually be put to some use instead of this nonsense.