Bernard Ecclestone, a former chief executive officer (CEO) of Formula One, faces trial in the UK for fraud and tax evasion in relation to a trust fund of over £400 million (S$693 million) in Singapore. The British tycoon will be tried in the UK High Court on November 16 for allegedly fraudulently hiding more than £400 million from the British government in the Singapore trust, reported the Daily Mail.
The 92-year-old Ecclestone headed Formula One from the late 1970s until he stepped down as Formula One CEO in January 2017. The former race car driver and the Singapore Tourism Board introduced the Formula One race to Singapore in 2007. In 2012, Ecclestone played a key role in renewing the Formula One grand prix in Singapore for another five years till 2017.
Ecclestone pleaded not guilty to a criminal fraud charge over his alleged failure to declare the millions of dollars held in the trust in Singapore to the British government at Southwark Crown Court in London on June 6, according to the Daily Mail report on the same day. The former Formula One supremo is accused of falsely claiming he had only set up a single trust for his daughters and indicating that, other than that trust, he was not the settlor nor beneficiary of any trust in or outside the UK, said the Daily Mail.
On 11 July 2022, the UK Crown Prosecution Service (CPS) said it had authorized the charging of Ecclestone with fraud by false representation, following an investigation by the British tax authority, His Majesty’s Revenue and Customs (HMRC).
Andrew Penhale, Chief Crown Prosecutor, said on 11 July 2022, “The CPS has reviewed a file of evidence from HMRC and has authorized a charge against Bernard Ecclestone of fraud by false representation in respect of his failure to declare to HMRC the existence of assets held overseas believed to be worth in excess of £400 million.”
Simon York, Director of Fraud Investigation Service at HMRC, said on 11 July 2022, “We can confirm that a fraud by false representation charge has been authorized against BBernard Ecclestone This follows a complex and worldwide criminal investigation by HMRC’s Fraud Investigation Service. The criminal charge relates to projected tax liabilities arising from more than £400 million of offshore assets which were concealed from HMRC. HMRC is on the side of honest taxpayers and we will take tough action wherever we suspect tax fraud. Our message is clear – no one is beyond our reach.”
The charge relates to Ecclestone’s allegedly false representation that took place between July 2013 and October 2016, reported Bloomberg.
In April 2014, Ecclestone went on trial in a court in Germany to face accusations that he had bribed a German banker with 33 million euros (S$49 million) to ensure that a company he favored could buy a stake in Formula One, reported the BBC. In August 2014, the German court ended the bribery trial in exchange for a US$100 million (S$132 million) payment from him, the BBC added.
The billionaire was quoted in the Guardian on 5 August 2014 as saying, “In the end what has happened today is good and bad; the good is the judge more or less said I was acquitted, and they (the prosecution) really didn’t have a case. So I was a bit of an idiot to do what I did to settle because it wasn’t with the judge, it was with the prosecutors.”
In May, Bernard Ecclestone was ranked the 73rd richest person in the UK with a net worth of £2.5 billion on the Sunday Times Rich List.
In an interview with the Straits Times on 21 November 2016, Bernard Ecclestone expressed hopes that the Formula One race in Singapore could continue. The Formula One grand prix is continuing in Singapore. In January 2022, the Singapore Tourism Board announced a contract had been signed that would let Formula One be held in Singapore till 2028.
Toh Han Shih is the chief analyst of Headland Intelligence, a Hong Kong risk consulting firm.