Paradise Papers: Hamilton saved 3.7 million euros in VAT on his private jet

Last year, when the Panama Papers made headlines, a name from the F1 paddock emerged, and it was Nico Rosberg’s. At the time, the German was involved in the arrangement made to sign his contract with Mercedes.

In the case shaking the media sphere this year, it’s another Mercedes driver who is mentioned, and for different reasons. It is the purchase of a private jet by Lewis Hamilton that finds itself in the spotlight. Tax legislation requires such a purchase to be subject to VAT if the usage is primarily recreational.

But the situation changes if the jet is mainly used for professional purposes, as highlighted by the pilot, who must attend 21 races per season, in all corners of the globe. But above all, he is not the direct owner but only the sole tenant.

The program Cash Investigation reveals that the 22-million-euro red jewel is, in fact, owned by Stealth Aviation Limited, a company registered in the Virgin Islands. This company then leases the plane to a company with a very similar name, Stealth Limited, based in another tax haven, the Isle of Man. On the same island, another company, Hanger 8, leases the plane in turn. But the declared user is B.R.V., which is registered on the British island of Guernsey but primarily refers to Lewis Hamilton. All the previously mentioned companies are owned by the Mercedes driver.

Contacted by the journalists of France Televisions, the lawyers of the four-time champion provided a straightforward response: « You must know that it is perfectly legal for a taxpayer to choose renting over buying to reduce VAT. The main goal being to obtain a tax advantage. »

Lewis Hamilton had certainly envisioned celebrating his new title differently than by seeing his sophisticated financial arrangements exposed.

With the participation of www.racingbusiness.fr