Indian Grand Prix under threat due to tax dispute

For all F1 discussions

Indian Grand Prix under threat due to tax dispute

Postby Woodcat on Mon Sep 12, 2011 10:24 am

Found this article on the "Autoweek" website today.... Has anyone heard more on this issue or how it may be resolved?? I personally feel as though the government in India is trying it's best to shoot themselves in the foot over tax money the teams and drivers will do all they can to avoid paying, and if enough teams declare they don't wish to compete due to the tax liability issues, I'm sure the FIA would step in and scupper the whole deal.... Bernie won't be happy, but then he's got a few other problems in his business affairs just now, hasn't he???

Formula One: Indian Grand Prix under threat due to tax dispute with teams
By: Adam Cooper on 9/09/2011
The inaugural Indian Grand Prix could be under threat because of a dispute between the Formula One teams and the country's tax authorities--and the issue is so serious that the teams say they can't go to Delhi for the Oct. 30 event unless the issue is resolved.
Driver earnings are also under dispute, and while they face issues in a number of countries, the teams as such are not usually involved in tax situations.
The Indian government wants to claim what it believes are its share of the annual incomes of the 12 teams. Team directors will apparently be held personally responsible for ensuring that any requested taxes are paid.
"It's a serious issue, and it needs to be resolved,” Formula One Teams Association frontman Martin Whitmarsh told Autoweek. “And the teams need to receive the appropriate reassurance to be able to go to India.
“There is a significant worry and concern among the teams, and it needs to be resolved. I am sure it will be, but if it weren't to be resolved, then it would threaten the race, wouldn't it?
“It's an issue of withholding tax. It's not an unfamiliar one. There are tax treaties between countries, and it's an extraordinarily complex matter. All of the financial directors within FOTA [Formula One Teams Association] are working together and are very concerned about it. We've employed Ernst & Young as consultants to help find a solution, and hopefully we will.”

Just more politics when all the fans care about is the racing....
Posts: 380
Joined: Mon Jan 05, 2009 9:56 pm

Return to General F1 discussion

Who is online

Users browsing this forum: No registered users and 2 guests