McLaren tax boost over 'spy' fine

Updated: 12 October 2012 19:57 IST

McLaren have successfully argued in Britain that a 32-million-pound (now $50 million) fine they paid after a 2007 Ferrari spying controversy should be tax deductible.

McLaren tax boost over 'spy' fine
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Yeongam, South Korea:

McLaren have successfully argued in Britain that a 32-million-pound (now $50 million) fine they paid after a 2007 Ferrari spying controversy should be tax deductible.

The fine was imposed by Formula One's governing body, the FIA, after a dossier of Ferrari data was found in the possession of the McLaren team's then-chief designer Mike Coughlan.

McLaren argued that the fine was "connected" with their trade and should be exempt from corporation tax.

A spokesman for the Britain-based team said in South Korea, where the next race is held on Sunday: "McLaren Group is a successful UK company which provides high-quality employment and substantial tax revenue.

"In 2007, McLaren Racing Ltd was required to pay a penalty, following a breach of the International Sporting Code of the FIA.

"After consideration, a Government tribunal has found that such a contractual penalty is tax-deductible. As a UK-registered company, McLaren will continue to comply with all relevant legislation."

Topics : Formula 1 McLaren Kimi Raikkonen Felipe Massa Ferrari Turkish Grand Prix
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