Exclusive: Ecclestone's Astonishing Twist in Tax Fraud Case – You Won't Believe the Sentence!
Former F1 chief Bernie Ecclestone avoids jail time after confessing to tax fraud of over $492 million involving undisclosed overseas assets
Former Formula One chief Bernie Ecclestone avoided immediate imprisonment on Thursday after admitting to deceiving the UK tax authority regarding his assets abroad, which were valued at over £400 million ($492 million).
Additionally, Ecclestone reached a civil agreement with HM Revenue and Customs (HMRC) to settle the matter. As part of the settlement, he will make a payment of £652.6 million, encompassing taxes, interest, and penalties for the period spanning 1994 to 2022, revealed prosecutor Richard Wright.
At London's Southwark Crown Court, the 92-year-old made an appearance and confessed to committing fraud through false representation. This occurred just a little over a month prior to his scheduled trial date. Ecclestone acknowledged providing a deceptive response to HMRC during a meeting in July 2015. He had falsely claimed to have created only one trust for his daughters and denied being a beneficiary or settlor of any other trust.
The settlor and beneficiary of multiple trusts, including one that transferred 416 million pounds to a bank account in Singapore in 2010, was none other than him, as stated by HMRC.
Ecclestone first became directly involved with F1 in 1971 when he purchased the Brabham team.
Belinda Jiao/Reuters
Judge Simon Bryan sentenced Ecclestone to 17 months in prison, but the sentence was suspended for two years. This means that Ecclestone will only face incarceration if he commits another criminal offense within that two-year period.
During the court proceedings, Ecclestone's lawyer, Clare Montgomery, informed the court that Ecclestone was unaware of the actual situation regarding his status as a beneficiary or settlor of any other trust. Montgomery argued that Ecclestone's response to HMRC was a spontaneous and erroneous decision.
Leaving the court and entering a waiting Range Rover, Ecclestone provided an incomprehensible answer to journalists.
In a statement, Andrew Penhale, the chief crown prosecutor at the Crown Prosecution Service, emphasized the importance of tax compliance and transparency, stating that every individual in the UK, regardless of wealth or fame, should fulfill their tax obligations and maintain open communication with HMRC regarding their finances.
Richard Las, the Fraud Investigation Service director at HMRC, stated that Ecclestone had "falsely informed HMRC." He further emphasized that this conviction serves as evidence that everyone is subject to the law and that HMRC will diligently strive to establish a fair tax system that supports our crucial public services.
A court sketch of Ecclestone and his team before being sentenced.
Elizabeth Cook/PA/AP
Ecclestone had attempted to stop the prosecution earlier this year, with his lawyers arguing that putting him on trial posed a serious risk to his life.
According to a June ruling, a cardiologist stated that the trial-induced stress made Ecclestone "more inclined to die than survive the trial."
Bryan contradicted this claim, asserting that the trial process posed no significant or imminent danger to Ecclestone's life.
Between 1999 and 2017, it was revealed that Ecclestone had paid approximately 250 million pounds in income and capital gains tax to HMRC, as stated in the decision. This payment was brought to attention by his lawyer, Montgomery, during a previous hearing in January. Interestingly, it was noted that Ecclestone's charges came shortly after he expressed "unpopular" opinions regarding Russian President Vladimir Putin.
