Coca Cola decides to pay their Olympic taxes

Coca Cola takes a lead from McDonald's.

Internet petitions have, for once, proved effective, as Olympic sponsor Coca Cola have joined McDonald's in announcing they will not be partaking in their allowed tax break during the Games. Since HMRC pronounced Stratford the latest haven in tax dodging, the internet has exploded with complaints that corporations sponsoring London 2012 such as Lloyds TSB, Visa and Adidas should not partake in the tax exemption they are offered. The legislation not only forgives sponsors from paying tax on the fortunes they will earn during the Games, but also any foreign nationals working in the UK for the purpose; this includes journalists, judges and the athletes themselves. While the amounts the individuals will rake in from three weeks of income and UK corporation tax concessions may not be huge, it will cost the UK tens of millions of pounds to lose, as estimated by Richard Murphy from the Tax Justice Network.

The petition was started on the 38 Degrees website and has now over 160 000 signatures. On Wednesday McDonald's bowed to furious online petitioners, saying that the revenue from the games would only make up 0.1 per cent of annual sales in the UK. Hours later, Coca Cola also conceded and made a statement on their website to pay their fair share of tax during the Games. Perhaps this is the first of many escape routes from the somewhat Orwellian laws of copyright the Olympics have influenced in this country. I refer to the legislation that vendors within 100 metres of Olympic venues are forbidden from violating sponsorship agreements, by which I mean selling chips. Except in the joyful loophole that fish with chips is allowed, selling chips alone which are not McDonald's branded will result in a hefty fine. Likewise with soft drinks other than Coca Cola and beer other than Heineken. Considering this it is less surprising that McDonald's and Coca Cola don't mind paying their taxes as it will hardly compromise the billions of pounds they will be earning. However, the decision to ignore the tax exemption still shows the corporations in a good light, and until the other sponsors back down the petition at 38 Degrees will continue to go strong to break them, or die in the attempt.

To the taxpayer the decision to pay the usual requirement of taxes seems only fair; the UK has already been proven to be riddled with tax evaders, with the Barclays scandal still hanging stagnant in the air along with dozens of other bankers' tax avoidance accusations. However, tax exemption is far from unknown in the Olympic world; in fact, such legislations have long since been endemic to the Games for years. Usain Bolt is just one of the big-name athletes who has pushed tax exemption rules to be adopted by hosting countries. So is tax just seen as something optional to be dropped when it comes to big publicity situations? No, it's worse than that; “tax” has become a poisonous word that evokes feelings of horror and misery the moment it's spat off the tongue. In a world where dropping tax is seen as a reward (though why big names should be rewarded for having logos on the side of the stadium needs further explanation) and paying tax is a punishment, how can we expect so much of large corporations? We seem to be forgetting the purpose of tax: to help people who can't help themselves, and provide the public with those mildly useful luxuries we occasionally need, such as hospitals and schools. Sometimes our tax isn't used very wisely by the government, no. But shockingly enough, it is a democracy that we live in, and we can use our power to vote or to sign petitions online towards the hope that whoever is in charge will make a loose majority of decent choices. Organisations like the Olympics promote the idea that only the losers pay tax and the winners, be they competing athletes or corporations that get brownie points for monopolising industries, are lucky enough to get out of helping their country function. As long as we keep this mentality it's inevitable that McDonald's and Coca Cola deciding to pay tax will be something of a shock to us. Thankfully, the fact that they have done so can contribute to a new mentality. It might even promote the aim to do good over earn money. One can only hope.

Olympic sponsor Coca Cola presents the torch relay in Glasgow. Photograph: Getty Images
Getty.
Show Hide image

Who is the EU's chief Brexit negotiator Michel Barnier?

The former French foreign minister has shown signs that he will play hardball in negotiations.

The European Commission’s chief Brexit negotiator today set an October 2018 deadline for the terms of Britain’s divorce from the European Union to be agreed. Michel Barnier gave his first press conference since being appointed to head up what will be tough talks between the EU and UK.

Speaking in Brussels, he warned that UK-EU relations had entered “uncharted waters”. He used the conference to effectively shorten the time period for negotiations under Article 50 of the Lisbon Treaty, the legal process to take Britain out of the EU. The article sets out a two year period for a country to leave the bloc.

But Barnier, 65, warned that the period of actual negotiations would be shorter than two years and there would be less than 18 months to agree Brexit.  If the terms were set in October 2018, there would be five months for the European Parliament, European Council and UK Parliament to approve the deal before a March 2019 Brexit.

But who is the urbane Frenchman who was handpicked by Commission President Jean-Claude Juncker to steer the talks?

A centre-right career politician, Barnier is a member of the pan-EU European People’s Party, like Juncker and German Chancellor Angela Merkel.

A committed European and architect of closer eurozone banking integration, Barnier rose to prominence after being elected aged just 27 to the French National Assembly.  He is notorious in Brussels for his repeated references to the 1992 Winter Olympics he organised in Albertville with triple Olympic ski champion Jean-Claude Killy.

He first joined the French cabinet in 1993 as minister of the environment. In 1995, Jacques Chirac made him Secretary of State for European Affairs, teeing up a long and close relationship with Brussels.

Barnier has twice served as France’s European Commissioner, under the administrations of Romano Prodi and José Manuel BarrosoMost recently he was serving as an unpaid special advisor on European Defence Policy to Juncker until the former prime minister of Luxembourg made him Brexit boss.“I wanted an experienced politician for this difficult job,” Juncker said at the time of Barnier, who has supported moves towards an EU army.

 

Barnier and the Brits

Barnier’s appointment was controversial. Under Barroso, he was Internal Market commissioner. Responsible for financial services legislation at the height of the crisis, he clashed with the City of London.

During this period he was memorably described as a man who, in a hall of mirrors, would stop and check his reflection in every one.

Although his battles with London’s bankers were often exaggerated, the choice of Barnier was described as an “act of war” by some British journalists and was greeted with undisguised glee by Brussels europhiles.

Barnier moved to calm those fears today. At the press conference, he said, “I was 20 years old, a very long time ago, when I voted for the first time and it was in the French referendum on the accession of the UK to the EU.

“That time I campaigned for a yes vote. And I still think today that I made right choice.”

But Barnier, seen by some as aloof and arrogant, also showed a mischievous side.  It was reported during Theresa May’s first visit to Brussels as prime minister that he was demanding that all the Brexit talks be conducted in French.

While Barnier does speak English, he is far more comfortable talking in his native French. But the story, since denied, was seen as a snub to the notoriously monolingual Brits.

The long lens photo of a British Brexit strategy note that warned the EU team was “very French” may also have been on his mind as he took the podium in Brussels today.

Barnier asked, “In French or in English?” to laughter from the press.

He switched between English and French in his opening remarks but only answered questions in French, using translation to ensure he understood the questions.

Since his appointment Barnier has posted a series of tweets which could be seen as poking fun at Brexit. On a tour of Croatia to discuss the negotiations, he posed outside Zagreb’s Museum of Broken Relationships asking, “Guess where we are today?”

 

 

He also tweeted a picture of himself drinking prosecco after Boris Johnson sparked ridicule by telling an Italian economics minister his country would have to offer the UK tariff-free trade to sell the drink in Britain.

But Barnier can also be tough. He forced through laws to regulate every financial sector, 40 pieces of legislation in four years, when he was internal market commissioner, in the face of sustained opposition from industry and some governments.

He warned today, "Being a member of the EU comes with rights and benefits. Third countries [the UK] can never have the same rights and benefits since they are not subject to same obligations.”

On the possibility of Britain curbing free movement of EU citizens and keeping access to the single market, he was unequivocal.

“The single market and four freedoms are indivisible. Cherry-picking is not an option,” he said.

He stressed that his priority in the Brexit negotiations would be the interests of the remaining 27 member states of the European Union, not Britain.

“Unity is the strength of the EU and President Juncker and I are determined to preserve the unity and interest of the EU-27 in the Brexit negotiations.”

In a thinly veiled swipe at the British, again greeted with laughter in the press room, he told reporters, “It is much better to show solidarity than stand alone. I repeat, it is much better to show solidarity than stand alone”.

Referring to the iconic British poster that urged Brits to "Keep Calm and Carry On” during World War Two, he today told reporters, “We are ready. Keep calm and negotiate.”

But Barnier’s calm in the face of the unprecedented challenge to the EU posed by Brexit masks a cold determination to defend the European project at any cost.

James Crisp is the news editor at EurActiv, an online EU news service.