The newspaper La Presse tells us this morning that Mr. Bernie Ecclestone Revenue Canada requires a written assurance of a federal tax exemption on the $ 75 million to receive the three levels of government over five years for the return of Grand Prix Montreal. Mr Ecclestone does not pay tax in Canada because his company - Formula One Management - is a British company. It suggests that it must pay taxes anyway in Great Britain. What is it exactly?
There is a tax treaty between Canada and the United Kingdom under which a Canadian taxpayer, who receives income on which we made deductions at source in the UK, can reduce all the taxes it must pay in Canada. The same goes for British taxpayers like Mr. Ecclestone. It can reduce the taxes it must pay to the British Government a sum equal to the amount withheld by Revenue Canada. Why, then, requires Mr. Ecclestone does not pay Canadian tax on income that will affect here? Did he act of patriotism by paying taxes to the British government? If the British company was incorporated in a tax haven which would protect the tax, it would be in the interest of Mr Ecclestone to avoid any deduction at source since it could not deduct the tax so withheld the amount he should give the government that has jurisdiction over Formula One Management. There, within the United Kingdom, tax havens. The company Formula One Management is owned by Delta Topco, a company incorporated in Jersey, a tax haven of the British Isles. The shareholders of this company are funds managed by CVC Capital Partners (70%), by JP Morgan (20%) and the entourage of Bernie Eclestone (10%). The head office of CVC Capital Partners is in Luxembourg, another tax haven. How the Government of Canada can accept the request from Bernie Ecclestone and continue its hunt for tax havens?
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