Bernie Ecclestone Pleads Guilty to Fraud After Failing to Declare £400 Million Trust

Key Highlights :

1. Bernie Ecclestone has admitted to fraud after failing to declare more than £400million in a trust in Singapore to the Government.

2. The 92-year-old said “I plead guilty” at Southwark Crown Court on Thursday while standing in the well of the court wearing a dark suit and grey tie.

3. On July 7, 2015, the billionaire failed to declare a trust in Singapore with a bank account containing around 650 million US dollars, worth about £400million at the time.

4. The court heard the former racing driver has agreed a civil settlement of £652,634,836 in respect of sums due to HMRC.

5. The charge stated Ecclestone, who has three grown-up daughters, Deborah, Tamara and Petra, and a young son, Ace, had “established only a single trust, that being one in favour of your daughters, and other than the trust established for your daughters you were not the settlor nor beneficiary of any trust in or outside the UK”.

6. Before his guilty plea, he had been due to face trial in November on the single fraud charge.

7. The court heard Ecclestone had said “no” when asked by HMRC officers whether he had any links to any further trusts “in or outside the UK”.

8. Prosecutor Richard Wright KC said: “That answer was untrue or misleading. “Mr Ecclestone knew his answer may have been untrue or misleading. “As of July 7, 2015, Mr Ecclestone did not know the truth of the position, so was not able to give an answer to the question. “Mr Ecclestone was not entirely clear on how ownership of the accounts in question were structured. “He therefore did not know whether it was liable for tax, interest or penalties in relation to amounts passing through the accounts. “Mr Ecclestone recognises it was wrong to answer the questions he did because it ran the risk that HMRC would not continue to investigate his affairs. “He now accepts that some tax is due in relation to these matters.”

     Bernie Ecclestone, the 92-year-old former Formula One boss, pleaded guilty to fraud at Southwark Crown Court on Thursday. Ecclestone admitted to failing to declare more than £400 million held in a trust in Singapore to the Government. He was dressed in a dark suit and grey tie while standing in the well of the court and simply said “I plead guilty” when prompted by the judge.

     The charge stated that Ecclestone, who has three grown-up daughters and a young son, had only declared a single trust, which was in favour of his daughters. The court heard that Ecclestone had agreed to a civil settlement of £652,634,836 in respect of sums due to HMRC. On July 7, 2015, the billionaire had failed to declare a trust in Singapore with a bank account containing around 650 million US dollars, worth about £400 million at the time.

     The court heard that Ecclestone had answered “no” when asked by HMRC officers whether he had any links to any further trusts “in or outside the UK”. Prosecutor Richard Wright KC said: “That answer was untrue or misleading. Mr Ecclestone knew his answer may have been untrue or misleading. As of July 7, 2015, Mr Ecclestone did not know the truth of the position, so was not able to give an answer to the question.”

     Ecclestone had been due to face trial in November on the single fraud charge, but his guilty plea has put an end to this. The court heard that Ecclestone had not been entirely clear on how ownership of the accounts in question were structured and he had not known whether it was liable for tax, interest or penalties in relation to amounts passing through the accounts.

     Ecclestone now accepts that some tax is due in relation to these matters and he will be sentenced later on Thursday. This case serves as a reminder to all of the importance of declaring any trusts or other financial arrangements to the Government in order to avoid any potential fraud charges.

Continue Reading at Source : southwalesguardian