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AIA

McLaren loses claim for tax relief on spying

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20th Jun 2014
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Racing team McLaren has lost its claim for tax relief on a £32m penalty for spying on Ferrari, a rival Formula One motor racing team.

The upper-tier tribunal overturned a 2012 ruling by the first-tier tribunal in favour of McLaren that the 2007 fine could be offset against tax.

The fine in 2007 was made by the sport’s governing body, the Fédération Internationale de l'Automobile (FIA), for breaching its International Sporting Code.

But the upper tribunal ruled that the fine was not an allowable deduction because the activities which gave rise to it were not part of McLaren’s trade. 

It supported the Revenue's appeal against that decision, by ruling the penalty was not incurred wholly and exclusively for the purposes of McLaren’s trade and so was not an allowable deduction for tax.

HMRC’s director general of business tax, Jim Harra, said, “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."

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By carroccio1958
23rd Jun 2014 13:31

JAMES BOND TO MISS MONEYPENNY ......
...why "wash nt " I called in on "thish" before it reached p this farcical point !!

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