Indian Grand Prix under threat due to tax dispute with teams

hitman

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May 10, 2005
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The inaugural Indian Grand Prix could be under threat because of a dispute between the Formula One teams and the country's tax authorities--and the issue is so serious that the teams say they can't go to Delhi for the Oct. 30 event unless the issue is resolved.

Driver earnings are also under dispute, and while they face issues in a number of countries, the teams as such are not usually involved in tax situations.
The Indian government wants to claim what it believes are its share of the annual incomes of the 12 teams. Team directors will apparently be held personally responsible for ensuring that any requested taxes are paid.
“It's a serious issue, and it needs to be resolved,” Formula One Teams Association frontman Martin Whitmarsh told Autoweek. “And the teams need to receive the appropriate reassurance to be able to go to India.
“There is a significant worry and concern among the teams, and it needs to be resolved. I am sure it will be, but if it weren't to be resolved, then it would threaten the race, wouldn't it?
“It's an issue of withholding tax. It's not an unfamiliar one. There are tax treaties between countries, and it's an extraordinarily complex matter. All of the financial directors within FOTA [Formula One Teams Association] are working together and are very concerned about it. We've employed Ernst & Young as consultants to help find a solution, and hopefully we will.”


Formula One: Indian Grand Prix under threat due to tax dispute with teams - Autoweek

Things r never certain in India till they r over with :D
 

ajuravi007

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Jaypee Sports India (JPSI) has got lot of headaches ...... Things will be sorted out if they bribe the right person at right time....

Anna should keep an eye on this event...
 


ajuravi007

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Dont know when this would come out...I wonder which minister got the bribe and what would have been the bribe amount ...I hope 1 days F1 becomes a national sport for India....too many indian drivers people like schumi , alonso or vettel or hamilton finding it difficult to get a race seat in F1.....
 


amish

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I am ok as long as government waives tax on bringing the equipments etc and taking them back as long as they dont sell anything.

But any profit they earn from India shud be taxed

As per that news report, it seems that this WHOLE EVENT is made tax free!!

So can someone shed light?

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The government on Wednesday exempted the Indian Grand Prix Formula One race organisers from paying any taxes or custom duties
 

ajuravi007

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Very Good...If they impose tax it would have hurted Bernie Eccleston....I have a query.... i feel every sports provides entertainment..... if govt tells that Racing is Entertainment then how about 100mts race or 200mts race or 500 mts race....How about T20 ?
 

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