Former F1 boss Bernie Ecclestone fined $AU1.2 billion for tax fraud

Bernie Ecclestone – the former boss of Formula One – has pleaded guilty to tax fraud, agreeing to pay approximately £653 million (or almost $AU1.26 billion) in remuneration to the UK Government.

As reported by UK outlet BBC News, Mr Ecclestone did not declare more than £400 million ($AU770 million) held in a Singapore-based trust when HM Revenue and Customs (HMRC) questioned him in 2015 regarding 18 years of tax affairs. 

After entering a guilty plea, Mr Ecclestone will be required to pay HMRC £652.6 million ($AU1.259 billion) as well as £74,000 ($AU142,700) in prosecution.

The former F1 boss was also handed a 17-month prison sentence, though this has been suspended for two years – at which point he will be 94 years old.

Mr Ecclestone quickly rose through the Formula One ranks after taking ownership of the Brabham team in 1972, which he ran until the end of 1987 – following two Drivers Championships for the squad in the hands of Nelson Piquet (1981, 1983).

However, it was behind the scenes where Mr Ecclestone gained the most power, becoming a leading figure within the Formula One Constructors Association (FOCA) – which mostly represented the non-factory-supported British teams.

In his role as the chief executive of FOCA, Mr Ecclestone was at the forefront of brokering deals with the sport’s governing body – the Fédération Internationale du Sport Automobile (FISA), now the Fédération Internationale de l'Automobile (FIA) – which included the 1981 Concorde Agreement.

The Concorde Agreement brought Formula One into a professional age and guaranteed income for its teams, the FIA and Ecclestone’s Formula One Promotions and Administration (FOPA).

Throughout his time as Formula One’s poacher and gamekeeper, Ecclestone often courted controversy with comments perceived to be negative towards the sport’s lack of embracing younger fans, as well as its adoption of racing in oil-rich countries.

In 2017, US firm Liberty Media took control of Formula One and removed Mr Ecclestone from his position shortly after.

Last year, British film-maker Manish Pandey released an eight-part documentary series centring on Ecclestone’s life around Formula One, titled Lucky! – which is currently available to stream in Australia on Stan.