Question for written answer E-002821-18
to the Commission
Rule 130
Mario Borghezio (ENF)

Various public prosecutor’s offices are looking into money laundering in Formula 1 sponsorship.

This ‘system’, replicated in almost all Western countries hosting the Grand Prix, is still active and the competent authorities are currently investigating slush funds totalling 80 million concealed from the tax authorities and linked to motor sport sponsorship. In this money laundering and slush fund scheme, the image rights of drivers were purchased by English ‘letterbox’ companies (Ara and Ad Evolution) which signed contracts with Italian entrepreneurs who transferred sums much higher than the actual costs involved and which included commissions. These sums were laundered through offshore companies with offices in Panama and the Marshall Islands, controlled by Swiss trusts linked to the Italian entrepreneurs. The slush funds were then invested abroad, deposited into Italian accounts or transferred back to Italy by other means, without being declared to the tax authorities.

What urgent measures does the Commission intend to take to eradicate this large-scale tax evasion through Formula 1 sponsorship?