Ecclestone vows to fight massive tax bill

Formula 1 chief executive Bernie Ecclestone is set for another lengthy legal battle after being told he faces the prospect of paying a £1 billion ($1.57b) tax bill.

The 84-year-old has been under investigation by Her Majesty's Revenue and Customs (HMRC) in the UK regarding his involvement, or otherwise, with a family trust known as Bambino Holdings set up for his ex-wife and daughters.

Following a hearing in London's High Court on Thursday, HMRC claims a 2008 settlement with Ecclestone is invalid on the grounds he withheld information. That stems from Ecclestone's bribery trial that took place in Germany last year.

Ecclestone brought an early halt to those proceedings by paying $94 million, allowed under German law, rather than running the risk of a 10-year jail term should he have been found guilty.

Information from that case led to HMRC reopening its investigation into the trust, with lawyer Tom Weisselberg informing judge Kenneth Parker: "From HMRC's perspective the settlement is void."

Judge Parker told the hearing, "The tax and interest demanded [from Ecclestone] is over one billion pounds."

In response, Ecclestone has taken the decision to sue HMRC for what he sees as its failure "to respect a decision made back in 2008."

Speaking in his motorhome in the Monaco Grand Prix paddock ahead of this weekend's race, Ecclestone reiterated his stance, saying: "I have never had anything to do with the trust. I'll be fighting this all the way. I've paid all the taxes I've ever had to pay.

"I could do whatever I do from here [Monaco], or Switzerland. I've a Swiss residence and the Swiss say I'm a Swiss domicile, so it would be easy to do it from there."

Ecclestone's remarks underlined a statement issued by his office that read: "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."

When it was suggested to Ecclestone that the case could take years, he replied: "I don't know. It shouldn't."

Originally on Autosport.com