Hamilton avoided taxes on jet: leaks

LONDON: Formula One champion Lewis Hamilton avoided paying taxes on his private jet using an elaborate scheme now under investigation by British tax authorities, new leaked documents revealed on Monday.

The driver received a £3.3 million ($4.4 million, EUR3.7 million) VAT refund in 2013 after his luxury plane was imported into the Isle of Man — a low-tax British Crown Dependency, according to the BBC and Guardian newspaper.

The revelations are the latest to emerge from the so-called Paradise Papers, released by the US-based International Consortium of Investigative Journalists (ICIJ).

They allege accountancy firm EY and Appleby — the Bermuda-based law firm at the centre of the leaks — assisted Hamilton and dozens of other clients in setting up seemingly artificial leasing businesses to get multi-million-pound VAT rebates.

The complex arrangements, which involved the individuals forming entities that rented their own jets, may contravene Europe-wide rules forbidding refunds for personal use, the media outlets said.

Representatives for Hamilton could not be reached by AFP for comment.

His lawyers told the BBC a review by a tax barrister found the structure was lawful, and that some VAT had been paid through the arrangements. There is also no indication Hamilton was directly involved in creating the scheme, and simply followed professional advice, the Guardian said.

EY said it does not discuss individual clients.

“All our advice, whether in planning or compliance, is based on our knowledge of tax law and providing transparency to tax authorities,” it added in a statement.

Appleby did not respond to a request for comment.

Leaked documents showed as many as 50 such schemes involving the Isle of Man, according to the BBC.

Its government announced on October 24 it had asked Britain’s finance ministry to help investigate business jet imports into the EU through its territory.