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Hamilton and Tax

Discussion in 'Gravel Trap' started by FB, Nov 6, 2017.

  1. FB

    FB Not my cup of cake Valued Member

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    Oops, I hope Lewis has negotiated a bumper pay rise with Merc for next year.

    Lewis Hamilton avoided taxes on £17m jet using Isle of Man scheme
     
    Chasz likes this.
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  3. Chasz

    Chasz Points Scorer

    I'm sure he'll be fine. EY and Appleby, on the other hand, are in big trouble! Greedy tax advisers!
     
  4. Chasz

    Chasz Points Scorer

    True in the past Hamberg, but these days aggressive tax avoidance usually results in such a public backlash and also doesn't necessarily guarantee that one won't have to pay the tax (see below).

    In fact HMRC actually has much more leverage these days against aggressive tax avoidance with the Advanced Payment Notice, whereby a payment is required to be made to HMRC before the case is settled.

    Also just because one's scheme was to the letter of the law doesn't mean that a judge cannot order one to pay the tax and fines if the scheme has no substance, such as Gary Barlow's supposedly loss making business (in that it was decided that there was no actual business, other than to avoid tax of course!)

    A lot of tax avoiders have come to the firm where I work to declare their schemes now and agree a settlement, rather than their scheme being potentially found out or ruled against in court.

    In conclusion, then, some tax avoidance schemes can be viewed as evasion these days.
     
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  5. Chasz

    Chasz Points Scorer

    From what I've read in Ham's scheme, there are a series of 'businesses' that essentially lease his jet to himself. As none of these businesses lease the jet to third parties, I doubt that they can be held as genuine businesses and as such the tax reliefs claimed should not apply. My take is that his jet tax scheme is on shaky ground. At the end of the day, though, it's the advisers who get sued!
     
  6. The Artist.....

    The Artist..... Champion Elect

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    Becker gets two years suspended for tax fraud
     
  7. Hamberg

    Hamberg FOTA VIP, I've got the avatar to prove it :) Contributor

    I deleted my comment because I hadn't read that particular article, I'll wait to see if it's evasion. If it's still just avoidance then I'm not bothered.
     
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  8. The Artist.....

    The Artist..... Champion Elect

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    I don’t think Hamilton is evading tax; however, it looks like a fairly aggressive tax avoidance scheme...
     
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  9. Chasz

    Chasz Points Scorer

    :D

    Oh it's most probably tax avoidance, technically speaking, but as I've said above the courts can look beyond the technical loop holes in certain cases.
     
  10. RasputinLives

    RasputinLives I was never cool at school. Contributor

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    I thought it was common knowledge Hamilton was avoiding tax? He moved to Switzerland as soon as he started making any money. To be fair to be Hamilton though I'm pretty sure the tax paid by all current F1 drivers on anything or in any country is probably not enough to take us all out for a McDonald's.

    Tax Isn't for rich people. I thought that was obvious by now.
     
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  11. The Pits

    The Pits Harumph. Again. Valued Member

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    Even the queen is at it.
     
  12. racecub

    racecub Champion Elect

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    If Hamilton ( or his advisors) haven’t broken any laws in what they’ve done I can’t see an issue here. The grey area seems to be whether he uses the jet for business or pleasure. Well it’s both.

    Avoiding tax is what most people do. ( signing over property and worldly goods to children in a timely manner, to avoid inheritance tax for example) It’s just on a grander scale for the rich.
    Hamilton employs financial advisors to save money where they can, and that’s what they’ve done. If the powers that be don’t like it, they should legislate against it, make it illegal. But they don’t because too many of them or their backers are using those very schemes.
    The morality of it is a different issue. But people are taxed by the law not by morality.
     
  13. Greenlantern101

    Greenlantern101 Super Hero And All Round Good Guy Contributor

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    Shouldn't this be in non news. Man living in tax haven avoids tax. Shocker.
     
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  14. The Artist.....

    The Artist..... Champion Elect

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    Even in Switzerland and/or Monaco, there are significant sales taxes; 20% in Monaco and 7.83% in Switzerland. Managing to avoid paying sales tax does raise this above just living in a tax haven.

    Are other drivers doing this? Almost certainly.

    Have other drivers been exposed yet? Not yet...

    One of the interesting questions that comes out of this is when is travel business travel for those who make a living through instagram... Being self employed, and taking photos of your travels could be seen as a business..
     
    Last edited: Nov 7, 2017
  15. Titch

    Titch Mine is the best pink car on the track. Premium Contributor

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    If you can afford 17 millions to buy a Jet, you can afford to pay the tax on it. Those of us who can’t afford to buy jets, or very little else ( including grandstand tickets for F1) pay our taxes. Maybe our taxes wouldn’t be so high, if the stinking rich paid their tax bills.
     
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  16. RasputinLives

    RasputinLives I was never cool at school. Contributor

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    The reason it's always a story with Hamilton is because of the big fuss made about his working class background and living in a council house. It's more of a bad taste in people's mouth that someone who was in a situation where they were assisted by the state then gets rich and then avoids paying back in to the system that helped them.

    How much of the tax avoidance is true and how much of the working class benefits is true I Don't know and couldn't know. However if you push your PR as a working class hero then you're going to get bad press for moving to Switzerland and not paying taxes on your own private jet.

    I doubt Hamilton gives one ounce of a shit though. Most of his money is probably in a secret Swiss Bank account somewhere.
     
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  17. cider_and_toast

    cider_and_toast Everything in moderation Staff Member Premium Contributor

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    As unsavoury as it generally is, most people wouldn't want to pay anymore dues than they absolutely have to and the more money you have the greater the levy. It all boils down to the fact that as long as it's not illegal than there is very little that can be done.

    The people I have a huge problem with are sanctimonious gits like Bono who spend their entire time telling everyone else to give their cash away, cancel third world debt and all live like monks when they are up to their eyeballs in tax friendly schemes.
     
  18. sobriety

    sobriety Podium Finisher

    A coroally of this is that if you can afford 17millions to buy a jet, you can afford to pay clever people to minimise your tax exposure on it, it just comes down to whether they or the tax are cheaper.
     
  19. Titch

    Titch Mine is the best pink car on the track. Premium Contributor

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    Does he live like a monk I wonder cider_and_toast , or just pretend to.
    Of course you don’t get to be rich and honest, or kind. Well not often anyway
     
  20. Titch

    Titch Mine is the best pink car on the track. Premium Contributor

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    So you get to be very rich, and automatically become greedy? The point is that ordinary hard working people HAVE to pay tax. Maybe their tax burden wouldn’t be so great if the Lewis Hamilton’s of this world were less greedy.
     
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  21. cider_and_toast

    cider_and_toast Everything in moderation Staff Member Premium Contributor

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    I expect he (Bono) enjoys life to the full. Charity however, begins at home apparently.
     
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