The taxpayer as the unofficial sponsor of the London 2012 Olympic Games

The package of special tax arrangements for the 2012 London Olympics ensures a beneficial treatment for numerous people officially involved in the organization of, and participation in, the Games. British taxpayers may not realize that they are unofficial sponsors of the 2012 London Olympics. Sports fans and haters alike are going to foot the tax bill for the International Olympic Committee and businesses involved in the Olympic Games because the UK government has offered a full tax exemption for any Olympics-related income. However, unlike in the case of official sponsors, there has been no negotiation or a contract with the general public which has to cover the cost of a privately held sports event. The bargaining power of the International Olympic Committee has enabled them to demand tax-free treatment and an above the law position. As a result, the Olympic Games in London have their own tax regime that constitutes a departure from the general principles of taxation in force in England.