F1 boss ex-wife settles tax audit with $20 million pay image

Bernie Ecclestone’s former wife, Slavica, paid a $19.9 million settlement in order to cease a tax audit made by the British tax authority, which investigated her fortune.

The Formula 1 boss ex-wife was investigated since the end of 1999 to March 2008 and although it seems that her huge fortune should be taxed far more than just $20 million (£10 million), actually the H.M. Revenue & Customs (HMRC) got a very good deal.

Slavica, a former model, actually didn’t even to pay any taxes in Britain, as she has a Croatian nationality and is non-domiciled in the United Kingdom – which means she doesn’t have to pay taxes on her fortune made outside the country.

Slavica is one of the beneficiaries of a trust, called Bambino, which is related to the Ecclestone family and the world of Formula 1. The estimated cash and assets owned by the trust are valued at more than $4 billion.

“Mr Ecclestone was notified in March 2012 that HMRC in the UK is currently investigating his tax affairs focusing primarily on his connections directly and indirectly to offshore trusts. HMRC has informed Mr Ecclestone that the investigation is being conducted in accordance with Code of Practice 8. This is applied in cases where there is no suspicion of tax evasion, but instead HMRC wishes to investigate if any tax planning undertaken by a taxpayer is effective to achieve its intended effect. The purpose of the investigation is to identify if there are any amounts of underpaid tax”, revealed last year Britain’s Daily Telegraph.

The Bambino trust was set up in December 1997 and besides Slavica, the other two principal beneficiaries are Tamara and Petra, Ecclestone’s two daughters with Slavica. The trust has its earnings from selling F1 stakes, dividends from the racing series and also a bond put on future revenues of Formula 1.

Via Forbes