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Ecclestone avoids £1.2bn tax bill

A complicated arrangement involving offshore trusts has allowed F1 supremo Bernie Ecclestone to reduce a potential tax bill by more than £1bn.

Bernie Ecclestone has reportedly been able to avoid a tax bill of over £1bn despite his affairs being investigated by UK officials.

The F1 ringmaster, who is currently facing bribery charges in Germany relating to the sale of F1's commercial rights to investment group CVC, was subjected to nine years of probing by HMRC, but ended up paying just £10m instead of a potential £1.2bn.

According to the BBC's Panorama programme, the figure dates back to the point where Ecclestone acquired the television rights to F1 but, because he moved the rights on to his then wife, who transferred them to an offshore family trust, he was no longer liable to pay tax when the asset was sold on at a vast profit.

The arrangement is legally watertight provided Ecclestone had no part in setting up or controlling the trust, and means that the 83-year old cannot receive payments directly from the trust. He does, however, receive money from ex-wife Slavica as part of their divorce settlement – a figure estimated to be in the region of $100m a year.

Panorama's report was based on previously unpublished transcripts of interviews conducted with one of the trust's lawyers by a German public prosecutor. Frederique Flournoy confirmed that, having been offered the opportunity to end the investigation for a payment of £10m – a sum the various family trusts were believed to accrue every six weeks or so - Ecclestone 'decided to pay up'.

Ecclestone claims to have paid 'more than £50m' in taxes in 2013, and insists that he is 'proud to be British and proud to make my contribution by paying my taxes here'.




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06.04.2015- Bernie Ecclestone (GBR), President and CEO of Formula One Management is visiting the media center
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20.07.2014- Gerard Lopez (FRA) Lotus F1 Team Principal (Right).
20.07.2014- Bernie Ecclestone (GBR), President and CEO of Formula One Management
20.07.201- Fabiana Flosi (BRA), wife of Bernie Ecclestone (GBR).
Max Verstappen (NLD) (Right) with his father Jos Verstappen (NLD).
19.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Qualifying Day.
Pat Fry (GBR) Ferrari Deputy Technical Director and Head of Race Engineering (Right).
09.07.2014. Formula One Testing, Silverstone, England, Wednesday.
Pat Fry (GBR) Ferrari Deputy Technical Director and Head of Race Engineering (Right).
09.07.2014. Formula One Testing, Silverstone, England, Wednesday.
Jean-Eric Vergne (FRA) Scuderia Toro Rosso (Centre) and Romain Grosjean (FRA) Lotus F1 Team (Right).
08.07.2014. Formula One Testing, Silverstone, England, Tuesday.
Bernie Ecclestone
Bernie Ecclestone
06.07.2014 - Sir Jackie Stewart (GBR), Prince Henry of Wales and Bernie Ecclestone (GBR), President and CEO of Formula One Management
06.07.2014 - Bernie Ecclestone (GBR), President and CEO of Formula One Management and Prince Henry of Wales
06.07.2014 - Bernie Ecclestone (GBR), President and CEO of Formula One Management and Prince Henry of Wales
04.07.2014 - Bernie Ecclestone (GBR), President and CEO of Formula One Management

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mrfill

April 28, 2014 11:00 AM

Far better that this money stays with poor old Bernie rather than being used to provide hospitals, schools and other useless items. If you could spend this amount at £250,000 a day, it would take over 13 years to deplete it with no interest taken into account. Or to put it another way, it has cost every man woman and child in the country £20 to keep Bernie in the style he wants. We must all be grateful....

richard

April 28, 2014 11:27 AM

somehow I would not mind having a tax bill of £1bn! wouldn't like paying it of course, but it means that I would have a lot more stashed away. but I saw an odd article yesterday. in his divorce settlement with slavica, SHE has to pay Bernie 100m every year!!!!!! probably due to his dodgy dealings which saw hiding his loot under her name



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