American investors used "controversial" Scottish "zero-tax" shell firms in their £6.4B takeover of Formula 1, according to Leask & Sylt for the HERALD SCOTLAND. U.S.-based Liberty Media finalized its purchase of F1 early this year, ending the "four-decade reign" of 86-year-old CEO Bernie Ecclestone. The company completed the deal with the help of two Scottish limited partnerships, "once obscure structures now popular among both legitimate businesses, for lawful tax planning, and among international criminals, for money-laundering." British MEP Anneliese Dodds "renewed her demands for an independent investigation" into how Liberty Media bought F1 in "light of its use of SLPs." She said, "This is yet another example of a loophole in the tax system that can be abused by companies and individuals looking to avoid their contributions. These shadowy SLPs are another tax instrument that, like trusts, need to be made transparent to crackdown on those avoiding tax." Liberty Media declined to answer questions about why it had registered two SLPs at a law firm in Aberdeen. However, before the takeover, the Americans "praised the tax structures" of F1's Jersey-based parent firm, Delta Topco. There is "no suggestion of wrongdoing by Liberty Media." But the deal marks the "highest profile lawful use of SLPs in recent years as they prove popular among private equity investors" because they have legal personality -- and can therefore buy and sell shares and other assets -- but no tax direct obligations (HERALD SCOTLAND, 4/4).
