F1 Champion linked to alleged tax avoidance on Island

Evidence stems from 'Paradise Papers'

A British racing driver has been linked to alleged tax avoidance on the Isle of Man by the BBC, after details revealed in the 'Paradise Papers'.

The broadcaster's Panorama programme has produced documents showing F1 Champion Lewis Hamilton imported a luxury jet costing £16.5 million into the Island in 2013, allegedly avoiding paying UK tax.

He was refunded £3.3 million in VAT, after importing a Bombardier Challenger 605.

The claims are based on evidence contained in a cache of documents, mostly coming from either a 'leak' or 'hack' of offshore law firm Appleby.

Panorama states it has documents revealing the 32-year-old 'intended to make private flights about a third of the time' in the aircraft, despite stating its planned use was for 'business purposes'

Hamilton's advisers established a leasing deal here, which Panorama allege was 'artificial' and 'did not comply with an EU and UK ban on refunds for private use'.

A tax barrister's review found the structure used to import the jet to be lawful, according to the sportsman's legal representatives.

Overall, the Paradise Papers show Appleby's Isle of Man branch has imported luxury jets worth £1.25bn.

The practice of importing business aircraft into the European Union through the Island is under spotlight, after allegations of abusive tax avoidance were made by the International Consortium of Investigative Journalists (ICIJ). 

The issue is expected to feature heavily in the second of two Panorama episodes on the 'Paradise Papers', which takes place tonight at 9pm on BBC One.