The 91-year-old is accused of hiding nearly half a billion euros worth of foreign assets from UK tax authorities. The controversial billionaire says the news comes as no surprise.
The multi-billionaire businessman has homes around the world and hidden assets to matchImage: Andy Hooper/SOLO Syndication/picture alliance
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UK tax authorities have authorized fraud charges against former Formula One racing boss Bernie Ecclestone over his failure to declare more than $477 million (€473 million) in foreign assets, said Chief Crown Prosecutor Andrew Penhale in London Monday.
"The charges relate to projected tax liabilities arising from more than 400 million pounds of offshore assets which are concealed from Her Majesty's Revenue and Customs [HMRC]," said Simon York, speaking for the agency. York said the charges are tied to a "complex and worldwide" investigation into Ecclestone's finances.
York said the "HMRC is on the side of honest taxpayers and we will take tough action wherever we suspect tax fraud. Our message is clear — no one is beyond our reach."
Ecclestone, who singlehandedly built a massive family empire out of F1 as he modernized the sport over the course of decades — and has drawn scrutiny in the past for the opaque fashion in which he conducts business — said he was not surprised by the charges, though could not comment as he had not yet seen them.
Speaking from his home in Ibiza, Spain, the 91-year-old multi-billionaire told Reuters news agency: "It's something that has been talked about happening... quite a while ago. They've probably got all excited again. Let's see what happens."
After more than 50 years in F1 — first as a driver, then a team owner and ultimately as "supremo" of the entire sport — Ecclestone was forced to step down in 2017, when F1 was bought by the US-based company Liberty Media and he was replaced by Chase Carey as CEO of the Formula One Group.
The case is expected to begin on August 22, at Westminster Magistrates' Court in London.
Global elite named in Paradise Papers
Reporters have published a raft of secret documents that reveal the strange investments and tax avoidance indulged in by the powerful and wealthy. The revelations come from the same team that uncovered the Panama Papers.
Image: picture-alliance/dpa/D.-L. Olivas
Bono and Nude Estates
U2 frontman and activist Bono was one of the highest-profile players named in the papers. In an elaborate web of financial transactions, Bono invested in a Maltese company called Nude Estates that was involved in a shady deal over a Lithuanian shopping mall. Malta is famous for its liberal tax policies. A spokesman for the singer denied any wrongdoing.
Image: picture-alliance/dpa/A. Gombert
US commerce secretary
President Donald Trump's Secretary of Commerce Wilbur Ross was listed in the papers for his interests in the Russian gas company Sibur. Ross has now been accused of failing to disclose his Russian connections to Congress during his confirmation hearing, though Ross has argued that as the company is not one facing US sanctions, he was not obliged to disclose them.
Image: picture-alliance/dpa/A. Harnik
Queen's private estate in hot water
Queen Elizabeth II is provided an income by her private estate, the Duchy of Lancaster. According to the Paradise Papers, the duchy invested 10 million pounds ($13 million) in offshore accounts in Bermuda and the Cayman Islands. The estate has said that the investments are legal.
Image: picture-alliance/dpa/D.-L. Olivas
Formula One champion
Reigning Formula One champion Lewis Hamilton reportedly avoided taxes on his private jet through an elaborate tax avoidance scheme, according go the Paradise Papers. The leaked documents show that Hamilton received a £3.3 million tax refund in 2013 after his plane was imported to the Isle of Man, a low tax British dependency located off the western coast of England.
Image: Reuters/A. Boyers
Germany's former chancellor
Gerhard Schröder, leader of Germany from 1998 to 2005, was named for his management role at the Russian-British energy firm TNK-BP in 2009. The company was registered in the tax haven British Virgin Islands. In 2013, TNK-BP was bought by Russian energy giant Rosneft — where Schröder is now the independent director of the board.
Image: Reuters/O. Astakhova
Colombia's president caught
According to the papers, Colombian President Juan Manuel Santos is listed as the director of two offshore companies in Barbados. He previously claimed to have severed ties with them in 2000 when he became minister of finance.
Image: picture-alliance/Photoshot
Lifestyles of the rich and famous
Not all of the revelations in the Paradise Papers necessarily detail illegal activity. But they do shed light on some of the strange investments and luxurious possessions of the world's elite, including Microsoft co-founder Paul Allen's yacht. Besides Microsoft, other US companies like Apple, McDonald's, Facebook and Walmart were found to have ties to Appleby.
Image: picture-alliance/PA Wire/B. Mitchell
Madonna medical supplies
One of the odd investments listed in the Paradise Papers is singer Madonna's stake in a medical supply firm. Actress Keira Knightley was also found to have stock in a Jersey-based real-estate firm.
