The UK Crown Prosecution Service (CPS) has authorised the charging of billionaire businessman and ex-Formula One chief executive Bernie Ecclestone with fraud by false representation.
The move follows an investigation by HM Revenue & Customs (HMRC) where it is alleged the billionaire failed to declare the existence of assets held overseas believed to be worth “in excess of £400m ($501m, €468m)”, said Andrew Penhale, chief crown prosecutor.
Simon York, director of fraud investigation service (FIS) at HMRC, added: “We can confirm that a fraud by false representation charge has been authorised against Bernard Ecclestone. This follows a complex and worldwide criminal investigation by HMRC’s FIS.
“The criminal charge relates to projected tax liabilities arising from more than £400m 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.”
Growing trend
The taxman’s investigation follows a spike in the number of wealthy individuals admitting to having dodged tax on their offshore income.
As of April 2022, the number was 4,443 – a 35% increase from the previous financial year, according to law firm Pinsent Masons.
At the time, Sophie Warren, tax investigations expert at Pinsent Mason, said: “Hiding offshore income from the taxman gets harder each year. As more and more countries agree to share information about individuals, the chances of getting caught multiply.
“The Common Reporting Standard has changed the game regarding offshore income sources.
“Increasingly, HMRC already has all the information it needs to prosecute thousands of people. These warning letters are really about giving people a final chance to come clean and receive a reduced penalty.
“HMRC will be looking for as many additional income sources as possible to mitigate the impact of the pandemic. Going after hidden offshore income is likely to be high on their target list.
“As with any instance of unpaid tax, it is always better to get on the front foot and come forward rather than wait for HMRC to come knocking.”
