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25 Jul, 2013

Exclusive: Formula One pays just £1m corporation tax on £300m profit – The Independent

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 year, The Independent has learned.

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.

via Exclusive: Formula One pays just £1million corporation tax on £300million profit – The Independent.