Olympics facing £1bn extra VAT bill

Olympics facing £1bn extra VAT bill

London’s bid organisers did not account for VAT costs on infrastructure projects

London’s preparations for the 2012 London Olympics have been dealt a body
blow after the UK Treasury told
organisers they failed to take into account at least £1bn in VAT costs for
construction of infrastructure projects in their bid for the games.

London’s bid organisers failed to include the VAT costs for the £2.38bn
construction of Olympics facilities in their submission for the
2012 games to the International
Olympics Committee in November 2004.

The Olympic Delivery Authority
has asked for the VAT costs to be waved but the Treasury is refusing to back
down and has warning the ODA and culture ministers that such a move risks
falling foul of European Union rules on state aid.

Further reading:

Accenture to run accounting systems for London
Olympics

EMI CFO appointed as Olympic audit chair

Consultants in Olympic beauty parade

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