PlanetF1

www.planetf1.com

Print

McLaren lose spy fine tax battle

Thursday 19-June-2014 06:02

McLaren's spygate fine from back in 2007 is not tax deductible, according to Britain's Revenue and Customs.

The Woking team was fined $100 million in 2007 when they were found guilty of illegally being in possession of secret Ferrari data.

The fine was reduced by almost half with McLaren seeking for that to be exempt from Corporation Tax. The team stated that it was "connected" to the business trade.

However, Reuters reports that on Wednesday HMRC ruled that the "illicit gathering" of information was not a part of the team's trading activities.

"We're very pleased the Upper Tribunal agrees that the fine should not be given tax relief, which supports our view that most fines are not allowable as deductions against trading income," Jim Harra, HMRC Director General of Business Tax, said.

As to be expected, McLaren were disappointed with the ruling.

"McLaren Group is a growing UK company, which provides high-quality employment and substantial tax revenue. We are disappointed by the result of the tribunal and will consider the options open to us," a team spokesperson told Reuters:

"As a UK-registered company, McLaren will continue to comply will all relevant legislation."

© 2014 - 365 Media Group

Any reproduction, publication or redistribution of this material without the written agreement of 365 Media Group is strictly forbidden.