McLaren’s $50-million Spygate fine tax deductable

Cash case full of moneyOct.12 (Reuters) The McLaren Formula One team have argued successfully in Britain that a record $51.33 million fine they paid after a 2007 spying controversy should be tax deductible.

McLaren had declared that the fine, originally set at $100 million but reduced by the loss of revenue resulting from being stripped of all their points in the constructors’ championship, was ‘connected’ with its trade and should be exempt from corporation tax.

Government officials had claimed that the ‘illicit gathering’ of information was not a part of the team’s trading activities.

The fine was imposed by Formula One’s governing body, the International Automobile Federation led at the time by the controversial Max Mosley, after a dossier of Ferrari data was found in the possession of the team’s then-chief designer Mike Coughlan.

“McLaren Group is a successful UK company, which provides high-quality employment and substantial tax revenue,” A McLaren spokesman said at the South Korean Grand Prix, on Friday.

“In 2007, McLaren Racing Ltd was required to pay a penalty, following a breach of the International Sporting Code of the FIA. After consideration, a Government tribunal has found that such a contractual penalty is tax-deductible.”

The spokesman said McLaren would continue to comply with all relevant legislation as a British-registered company.

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  • freakytrends

    With this money they could have easily signed Hamilton :)

  • McLarenfan

    Good on them and they should have claimed the fine back off of Mike Coughlan and Alonso who admitted that they had it to Ron and Max when Alonso tried to get Ron to make him NO1

  • Lincolnlad

    Too right, Alonso amd Mike Coughlan were both as bad, Mike seemed to want to get caught with the data and Alonso wanted the Ferrari seat.

    With F1’s rules and regs, F1 cars have to fit certain parameters, they are all using the same fuel-tanks, tyres ect, the only thing that is different is the design of the car, and even aspects of that can share similarities to other manufaturers. So I can’t see how McLaren were guilty of “spying” every team does it, even Ferrari. So I can’t see how the FIA could say that McLaren used information gained from that data.

  • fools

    I dont see why Alonso is even mentioned. He doesn’t cheat.

  • Bec

    So in effect they didn’t get punished at all.

  • fsdsdgsdg

    wasn’t it 100 million? or did they have a discount too!

  • McLarenfan

    @ Fools:
    PMSL nice one