Formula 1 News

McLaren tax boost over 'spy' fine

A good part of the money paid as a consequence of the "spygate" scandal of 2007 will be tax deductible.
Friday, October 12, 2012

Yeongam, South Korea, Oct 12, 2012 (AFP) - McLaren have successfully argued in Britain that a 32-million-pound (now $50 million) fine they paid after a 2007 Ferrari spying controversy should be tax deductible.

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The fine was imposed by Formula One's governing body, the FIA, after a dossier of Ferrari data was found in the possession of the McLaren team's then-chief designer Mike Coughlan.

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McLaren argued that the fine was "connected" with their trade and should be exempt from corporation tax.

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A spokesman for the Britain-based team said in South Korea, where the next race is held on Sunday: "McLaren Group is a successful UK company which provides high-quality employment and substantial tax revenue.

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"In 2007, McLaren Racing Ltd was required to pay a penalty, following a breach of the International Sporting Code of the FIA.

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"After consideration, a Government tribunal has found that such a contractual penalty is tax-deductible. As a UK-registered company, McLaren will continue to comply with all relevant legislation."

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