I had this discussion with a friend of mine regarding this whole issue of the F1 capping or not capping and where the cap should be… and the whole breakaway issue

He brought up an interesting point, he basically was talking about money… but not the money being spent he was talking about the money saved by the big team and manufacturers.
These teams “over spend” in order get all kinds of tax breaks, rebates etc. It is a very open platform that no one can really follow the money over all these border and suppliers, the FIA is basically looking to get a piece of the cake.

What do you guys think?

 

I'd never thought about that, but your friend brings up an interesting point. I guess I wouldn't really be surprised if that was the case.

 

It is all about finding that loop and F1 is full of them I guess

 

That's interesting and very plausible. Cook the books to show a bunch of $800 hammers and you pay that much less in tax. It also potentially takes away a reason for the teams to stay put.

 

??? How do they get breaks by over-spending? And any multi-national corporation, Ferrari included, does business across dozens of borders, and still has to account for it all.

I'm not saying your wrong. I'm just not following you. To me this is like saying a woman opened a clothing shop as a hobby business because her husband is a surgeon and needed the tax break. Or your take-home pay after your raise left you with less money because it bumped you into a higher tax bracket . . .

 

It might be hard to see but just look at Argentina… I think they have just over 30,000 registered race car drivers, why? Cause contributions to motor sports are tax deductible. The same goes for a team like Ferrari, why account for a single Euro under the passenger car business (taxable) if you can put it under F1 team parts, tools and/or R&D