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Philanthropic Ecclestone does it yet again......Finance johnnies again .....only the rich need them ......
the country can do with out both.............
Courtesy Independent .........
Exclusive: Formula One pays just £1million corporation tax on £300million profit
High-octane tax scheme adds urgency to calls for UK's 'broken tax code' to be fixed
The company that runs Formula One has used a complex technique to legally avoid paying
tens of millions of pounds in corporation tax despite racking up annual profits of £305m last yea
F1, which is run by billionaire Bernie Ecclestone, made a net contribution of £945,663 ($1,468,000)
in corporation tax in 2011 on revenues of £980m ($1.5bn) - even though the majority of its
commercial operations are based in the UK.
The company has been able to substantially reduce its tax liability by taking out loans from other
companies in the same group, as part of a complex arrangement with HM Revenue and
Customs (HMRC). The interest payable on these loans is tax deductible, reducing the
firm's taxable profits.
Details of money-spinning motorsport's tax arrangements have been disclosed in a prospectus
for the planned flotation of F1 on the Singapore stock exchange.
The Independent has also established that total corporation tax contribution from businesses
linked to F1 - including by F1 itself, the eight teams and the two engine manufacturers
headquartered in the UK, and the Silverstone circuit which hosts the British Grand Prix - was
just £1.9m in 2011 despite total revenues of £2.1bn.
An analysis for this newspaper shows that in 2011, the most recent year for which a complete set
of data is available, tax was only paid by two of the 12 F1-linked businesses.