- Ecclestone guilty of tax fraud.
- £652.6 million settlement.
- Suspended prison sentence.
The court heard that Ecclestone and HMRC reached a settlement of £652.6 million.
Bernie Ecclestone, the former head of Formula One, avoided incarceration by pleading guilty to tax fraud for failing to inform the government that he owned £400 million in a trust in Singapore.
Southwark Crown Court sentenced Ecclestone, who will turn 93 this month, to 17 months in prison with a two-year suspension.
The oligarch paid HMRC £652.6 million for his tax affairs over 18 years.
Today, in a dark grey suit, he pleaded guilty to one count of fraud with his third wife, Fabiana Flosi. His trial was scheduled to begin in November.
When Ecclestone stated that he “established only a single trust” in support of his daughters Deborah, Tamara, and Petra, prosecutors alleged he provided HMRC with false or misleading information during a July 2015 meeting.
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The court heard Ecclestone respond “no” when HMRC officers asked about trusts “in or outside the United Kingdom.”
He neglected to establish a trust in Singapore with a bank account containing approximately $650 million. Which was valued at approximately £400 million at the time.
Ecclestone “knew his answer might have been false or misleading,” according to prosecutor Richard Wright KC. But “lacked knowledge of the position’s truth, therefore was unable to respond to the question.”
“Mr Ecclestone recognizes it was wrong to answer the questions he did because it ran the risk that HMRC would not continue to investigate his affairs,” according to him.
“He now accepts that some tax is due in relation to these matters.”
According to court testimony, Ecclestone’s decision to terminate the investigation resulted in an approximate £100,000 savings. However, Mr. Wright stated, “One could argue that no savings have been realized. Because the exposure of the deceit has generated substantial legal expenses.”
His attorney, Clare Montgomery KC, introduced the testimony of a cardiologist at a previous hearing in an attempt to futilely argue that her client should not be tried on the grounds that the stress of the proceedings could be fatal.
Additionally, Ms. Montgomery KC asserted that he was charged one week after he made “extremely unpopular” comments on ITV’s Good Morning Britain on 30 June 2022 regarding Russian President Vladimir Putin.
“We will be submitting, on the face of it, the assumption he was being prosecuted. Because of that rather than the legitimate public interest criteria,” she indicated at the time.
Ecclestone apologised for calling Vladimir Putin “a first-rate individual” and that he would “take a bullet” for him.
Ms. Montgomery stated that Ecclestone “deeply regrets” the circumstances surrounding his prosecution and further stated, “Mr. Ecclestone did not have the intention of evading tax obligations.” He has consistently demonstrated a willingness to remit the tax that was owed.
She stated that his response was a “impulsive lapse of judgment” and that the proceedings had caused “immense stress for him and his loved ones.” As a result, he was now in “frail health.
As Eccleston was remanded to the dock, Mr. Justice Bryan stated that his age, health, and the tax settlement he has remitted mitigate the “undeniable gravity” of his offense.
“That has caused me to stand back and reflect upon whether the seriousness of your offending is such that appropriate punishment can only be achieved by immediate imprisonment,” he continued.
However, the prosecution and defence have convinced me that the seriousness of your offending does not require immediate imprisonment. And I will impose a suspended sentence after considering all the factors.
After leaving the courtroom and entering a waiting white Range Rover, Ecclestone did not answer reporters’ questions.
HMRC principal investigation officer Richard Las stated, “Bernie Ecclestone has been presented with numerous opportunities and sufficient time to accept responsibility and be forthright with HMRC regarding his tax affairs.
“Rather than capitalizing on these opportunities, he deceived HMRC; consequently, a criminal investigation was initiated.”
“This investigation culminated in the guilty plea of Bernie Ecclestone to fraud after inquiries from around the world were conducted.” In addition to having a criminal record, he has remitted £652 million in payments concerning his broader tax affairs.
