World corporations do not pay taxes at the OI: Brazil loses a billion dollars

Brazil will lose about $31 billion in revenue, thanks to legislation that turns the Olympics into a tax haven. Coca-Cola, McDonald's, Visa and other corporate sponsors of the Olympic Games in Rio de Janeiro, due to the tax exemption law, do not pay taxes on the money they earn at the Olympics, reports SEEbiz. According to the tax exemption valid until December 37 of the following year, profits from advertising, sales of products, imports and some other activities related to the organization of games are exempt from tax. "This is another privilege enjoyed by today's multinational companies around the world. It is not an isolated event," said the director of the Brazilian news portal Ostale Palavras, Antonio Martins. In Brazil, XNUMX million people live in severe poverty. The Brazilian economy is in full swing recession, President Michel Temer's interim government has adopted strict austerity measures. At the same time, the country is losing about $XNUMX billion in tax revenue due to the aforementioned tax breaks, according to the BBC. According to Naomi Fowler of the activist-analytical group Tax Justice Network, tax exemptions for corporations is a prerequisite imposed on any candidate that hosts major sporting events. "Every country has to accept this in order to become a tax haven for these companies," Fowler explained. Among the main sponsors of the Rio Olympics this year are corporations such as Coca-Cola , McDonald's, Visa, Bridgestone, Samsung, Panasonic, Omega, Procter&Gamble, General Electric, Nissan, Globo, Nike, Microsoft and Airbnb.