Tricky accounting allows Formula 1 to pay almost no tax

Formula 1 F1 logoIt has emerged that due to a complex tax arrangement, Formula 1 pays a minuscule amount of tax, relative to the huge earnings generated by the sport.

Writing in The Independent, leading Formula 1 business journalist Christian Sylt said that the sport paid less than $1.5 million in tax in 2011, despite making a profit of almost half a billion dollars.

Sylt said the low tax bill was achieved due to a complex web of loans within the Bernie Ecclestone headed empire.

Sun journalist Ben Hunt quoted British tax office Her Majesty’s Revenue and Customs as saying: “We do not discuss individual businesses.”

The Formula 1 teams association FOTA also declined to comment. (GMM)

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Content on by: staff & contributors, Reuters syndication, GMM service, Getty Images, Formula 1 teams, sponsors & organisations.

  • =El Presidente=

    We all have to accept it.. the world is tainted and corrupted..
    why bother anymore? It has always been corrupted (for at least the last 4500 years) and it will always be corrupted.

    =yes im working hard to break into that circle= 😉

  • Rochi Samra

    It’s strange how many blogs there are on this topic!

    I don’t know if I will need to be back, but it is great to know
    I found the one that offers some helpful information if this should come
    up for me another time.