F1 tax row clouds Indian GP

[Alianora La Canta]

What I recall of USA 2001 is that the Schumachers panicked about security and everyone else carried on preparing without making any kind of cancellation threat at all.

Strange - in the UK, it was only the Schumachers that were anti-US GP. Bernie was adamant everyone was going and the rest fell into line, as they knew they'd have to even if they'd disagreed.

And do you really think that Bernie lost money on Bahrain? We have a story over here about Br'er Rabbit and the brier patch.

Unless you are suggesting that Bernie broke his contract to take the payment (bearing in mind 50% isn't even due until after the race and the other half is due 2 weeks prior to the race, meaning he had 0% in his hands at the time of cancellation), then Bernie cannot have made anything on the Bahrain race. It is mathematically impossible for him to have done so.

I far as I can tell, France is the only other county that had this policy with an F1 race. That problem was settled: there is no more French GP.

That wasn't why they lost the race, otherwise they wouldn't be going there in 2013. The tax laws are exactly the same in that respect; the difference is that the track is no longer in the middle of nowhere in a place where most of the living beings in the catchement area are cows. The track couldn't get the attendance necessary to afford even a discounted fee, so the organisers (not Bernie) pulled the race to stop making such huge losses.

[cosworth151]

Strange - in the UK, it was only the Schumachers that were anti-US GP. Bernie was adamant everyone was going and the rest fell into line, as they knew they'd have to even if they'd disagreed.

I can't speak to what was in the British press. I only know what was in the papers and on TV over here. I know that friends in Indy weren't at all sure that there would be a race that year.

It is mathematically impossible for him to have done so.

I guess you just have much more faith that Bernie's dealings are all open & above board than I do. I wonder how much money is passed under the table.

otherwise they wouldn't be going there in 2013

We'll see if they actually do.

[Alianora La Canta]

They're going to Bernie's track in France (meaning Bernie gets to pocket half the "Bernie fee" as well as the usual money). Tax on 1/19th of the annual income still leaves him with a large profit margin. It'll happen.

It looks like the tax issue hinges on whether F1 is entertainment or sport. The difference is that the latter gets a tax exemption if it's a big enough event ("national interest" being the threshold, which F1 should easily meet). The former doesn't.

[Alianora La Canta]

The organisers have agreed to pay the tax on behalf of the teams if need be. Everyone can relax now.

[Scott]

I thought it was an income tax issue...this report is all about customs duties.   

I don't think the drivers give a hoot about duties the teams have to pay.  The drivers might have to pay duty on their helmets and suits (maybe not if the team technically owns them) - what else?

These appear to be two separate issues - I would say that if India has such convoluted tax and duty laws and don't automatically give waivers considering the 100m strong worldwide audience, then they shouldn't be on the calendar at all.

This story is about income tax:
http://uk.reuters.com/article/2011/09/09/uk-motor-racing-prix-india-idUKTRE7885LH20110909?type=formulaOne

The one Ali posted is about customs duties:
http://www.autosport.com/news/report.php/id/94543
 

[Alianora La Canta]

Under the circumstances it wouldn't surprise me if both were at issue. You can add visas to the list - allegedly Hispania had half of their team visas rejected. That's not going to help Narain get his drive...

[Ian]

Looks like the tax issue is sorted.

http://news.bbc.co.uk/sport1/hi/formula_one/14916208.stm

[Scott]

So likely Bernie made a call and sorted it out that the organizers must fork out another GBP2m.