- Bernie Ecclestone, former Formula 1 chief, pleads guilty to fraud for not declaring £400 million in assets.
- He received a 17-month suspended jail sentence and settled with HMRC for £652,634,836.
- The court considers his age, health, and settlement in deciding against immediate imprisonment.
London, UK – Bernie Ecclestone, the former Formula 1 chief, has been spared imprisonment after changing his plea to guilty for failing to declare an estimated £400 million in overseas assets to the UK government. The 92-year-old, whose barrister stated he is in frail health, submitted his guilty plea at Southwark Crown Court this morning, averting a trial that was scheduled to commence in November.
Ecclestone failed to disclose a trust in Singapore, holding a bank account with approximately $650 million, which was valued at around £400 million at the time, back in July 2015. The court learned that Ecclestone had reached a civil settlement of £652,634,836 concerning sums owed to HMRC. His defense barrister, Christine Montgomery KC, conveyed to Justice Bryan that Ecclestone profoundly regrets the events that led to this criminal trial.
The charge asserted that Ecclestone had “established only a single trust, that being one in favor of your daughters and other than the trust established for your daughters, you were not the settlor nor beneficiary of any trust in or outside the UK.”
Ecclestone had been set to face trial next month. Ms. Montgomery informed the court about Ecclestone’s frail health and emphasized the immense stress caused to him and his loved ones due to the case. She clarified, “It was not Mr. Ecclestone’s intention to avoid paying tax. He has always been willing to pay the tax that was due.”
During the hearing, Ecclestone answered “no” when asked by HMRC officers whether he had any links to additional trusts “in or outside the UK.” Prosecutor Richard Wright KC pointed out that this answer was misleading and that Ecclestone was not entirely clear on how the ownership of the accounts in question was structured.
Sentencing Ecclestone, Justice Bryan acknowledged the gravity of the offense but took into account mitigating factors such as his age, health, and the substantial tax settlement he has paid. The sentence imposed was 17 months in jail, suspended for two years, implying that imprisonment would only be enforced if Ecclestone committed another criminal offense during this period.
Ecclestone, known for his influential role in Formula 1, has made a significant payment of £652.6 million to HM Revenue and Customs (HMRC), covering his tax affairs over a span of 18 years. This payment includes a penalty of over £340 million for offshore non-compliance.
Bernie Ecclestone’s legal troubles date back to his alleged involvement in bribery charges in 2014, where he was accused of paying a German banker to steer the sale of a stake in Formula 1. While Ecclestone was cleared of those charges, subsequent investigations led to this recent case involving tax evasion.
