McLaren loses tax battle over $100m fine
|19 June 2014 by TF1T Staff | M||Tweet
McLaren has lost its battle with Her Majesty's Revenue and Customs over a $100 million (£58m) fine awarded by the FIA back in 2007 for its part in the 'spy-gate' saga.
The fine was eventually reduced to around half that amount as the ruling stated that any money McLaren would have been awarded that season from the prize money pot should be deducted from the overall fine.
McLaren had hoped to claim the fine as tax deductable as it was related to the business trade, but HRMC has won a ruling which states it isn't.
"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," said Jim Harra, HMRC Director General of Business Tax.
McLaren hinted that they may appeal the decision after admitting they were disappointed by 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."