What a Whopper! - Bernnie Ecclestone's £1BN Tax Bill

The FT reports that Bernie Ecclestone, the Formula One chief executive, is fighting a tax bill of more than £1bn, after Revenue & Customs reopened a long-running dispute over a family trust.

The judge ruled that a judicial review to decide whether HMRC had breached its guidance should only be considered after the commercial court decides whether HMRC’s withdrawal from its 2008 agreement was legal.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

HMRC Strike Ballot

The Morning Star reports that 50,000 tax workers are being balloted on industrial action in a dispute over job cuts.

The Public and Commercial Services union (PCS) which announced the ballot yesterday.

PCS is quoted:

“Despite significant opposition, HMRC is pressing ahead with the closure of all its 281 walk-in enquiry centres.

This will cut face-to-face tax advice for millions of people, particularly older people and migrant workers, and put 1,300 jobs at risk.”

The ballot closes on Friday, May 16. If members vote for action, PCS is planning to launch a series of one-day and shorter strikes, and other forms of industrial action.

PCS general secretary Mark Serwotka said: 

“A decade of cuts has left HMRC unable to cope with its crucial job of collecting the taxes that fund the other public services we all rely on.

These cuts must be stopped and the government must invest in our society and a serious clampdown on the tax dodgers who deprive our public finances of tens of billions of pounds a year.”

A PCS HMRC spokesperson is quoted on the PCS site, referring to the Ecclestone tax avoidance story:

"The irony is not lost on us or our members who see one of the richest people in Britain dodging his tax on the same day as we are being forced to ballot our members in HMRC on industrial action. The department is intent on more privatisation and cutting of our members’ jobs which will lead to less capactiy (PCS may want to spell check their site) for collection of taxes. We want to close the widening tax gap whereas this government seems happy to let billionaires get away with tax avoidance.”

Will industrial action change the current direction of HMRC, and improve its performance?

Please feel free to share your views.


Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Low Hanging Fruit

The BBC's Panorama reports that Formula 1 boss Bernie Ecclestone has avoided a potential £1.2BN in taxes as a result of a secret deal with HMRC, wherein after a nine year investigation HMRC agreed to accept £10M in 2008.

Panorama's investigation goes back to 1995, when Mr Ecclestone secured ownership of the TV rights of Formula 1.

Shortly afterwards he moved this asset offshore, giving the rights to his then wife, Slavica.
She transferred them to a family trust in Liechtenstein, before selling them for a profit, free of UK tax.

The BBC uses the phrase "tax dodge" but then, in the same sentence, notes that it is legally watertight provided Mr Ecclestone did not set up, or control, the trust.


In a case like this, both HMRC and the taxpayer's lawyers will have arguments/justifications that back up their respective positions. However, at some stage a decision has to be made (by both parties) as to whether the costs of pursuing the case outweigh the costs of coming to a settlement.

Sadly, for those of us without a phalanx of lawyers and deep pockets such "negotiations" never occur. Low hanging fruit (even if not very large) is usually the easiest to pick.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"