Bernie Ecclestone has been hit with a ‘surprise’ £1 billion ($1.56bn) tax bill by Her Majesty’s Revenue and Customs (HMRC) which he has vowed to fight in court.
The billionaire Formula 1 boss has launched legal action against HMRC, claiming he has always paid his fair share of tax in the UK.
The surprise bill stems from an investigation into his involvement in a family trust he set up for his ex-wife and daughters, known as Bambino Holdings.
The trust, which Ecclestone funnelled billions into, is offshore and therefore exempt from tax. However HMRC previously claimed Ecclestone had access to it, and should therefore pay tax.
This earlier investigation was settled in 2008 when the 84-year-old paid the British government £10m. But following his bribery trial in Germany last year, HMRC claim Ecclestone withheld information and therefore claim the settlement is invalid.
HMRC have now hit Ecclestone with a £1bn tax bill, including interest.
In response, Ecclestone has launched legal action, claiming HMRC aren’t respecting a “decision made back in 2008” to settle the matter.
“I have never had anything to do with the trust,” he said on Thursday. “I’ll be fighting this all the way. I’ve paid all the taxes I’ve ever had to pay.”
An official statement from his office adds: “Mr Ecclestone will be pursuing other legal avenues to ensure that HMRC is held to its original agreement of 2008.
“He merely wants HMRC to act in accordance with its obligations and the law.
“Mr Ecclestone has chosen to live in the UK, even though he could have lived and worked elsewhere, and he has always been content to pay UK taxes at whatever rate has applied.”
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