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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