Olympic Games Facing Huge Extra Costs

ORGANISERS of the 2012 London Olympic Games have discovered they may be facing a huge additional tax bill.

The Treasury has told organizers that they must pay VAT on building and staging the games - a cost which was not built into the original budget, writes COLIN GRAINGER, Editor.

They say European regulations state it cannot be seen to be supporting the organisers of the event. It is in discussions with the Olympic Delivery Authority over the matter. When the London bid was submitted to the International Olympic Committee in 2004 it included an estimate for building various sites in east London. It estimated the cost at £2.38bn, but that did not include VAT on construction work or other costs.

newhamnews

Looks like the LOGOC will be looking for some new accountants :wink:

Yes I find it amazing that someone `forgot` about VAT. I wish I could do the same. :roll: