Lewis Hamilton’s Tax Evasion Tactics Justified by Former Champion’s Views on the Dark Side of F1: “Reality Forced Us”

Do you remember when Lewis Hamilton moved to Monaco? That’s when Switzerland changed its financial policy and Monaco became a tax haven for the wealthy. A former 3x World Champion recently released his autobiography. Although he was a world champion and an F1 driver, he still had to do the unthinkable to provide for and secure his family’s future. His words justify the tax evasion practices undertaken by him as he sides with Lewis Hamilton and talks about the dark side of F1.

Most of the F1 drivers live in Monaco, as the country does not impose any tax on the personal income of the residents. Many consider this to be a form of tax evasion. Lewis Hamilton moved to Monaco for the same benefit and many people criticized his move, suggesting that he doesn’t pay taxes in his native country which slows down UK’s development.

The tax rate in the UK on personal income of £125000 and above is 45%. That is equivalent to paying half of the money Hamilton warns for risking his life to the government. The 7x world champion has been involved in many Tax Evasion incidents. However, Jackie Stewart backed the Briton, explaining how at one point he had to pay 97% tax to the Scottish government. Stewart explained in his autobiography how he had to move to Switzerland to provide financial security for his family.

According to the Donut Racing Show Podcast, the host suggested that Jackie Stewart wrote in his autobiography “For all its glamor my sport was also incredibly dangerous. This reality forced us to make another hard decision, to leave Scotland for Switzerland. Our move was prompted by the reality that as a top-rate taxpayer in 1968, I was paying 93% income tax. I was keeping 7 pennies for every pound I earned”

Further explaining his move to Switzerland he wrote “As an F1 motor racing driver with no cash reserves and maybe 5 or so good earning years ahead of me, there was simply no way I could make provisions for my family if I was killed or involved in a big accident. The only way I could give security to my family was to move and live in a place where we would keep more of my income”

Read More: Lewis Hamilton Tipped to Reach Billionaire Status Like Team Boss Toto Wolff as $6,000,000 Investment Crowned a Masterstroke

While the drivers make significantly more money than they used to back in the day. Regardless, paying around half of your hard-earned money to the government sounds almost criminal. Moving to Monaco isn’t the only way Lewis evaded tax. Let’s see what other way did Lewis Hamilton opt for.

Lewis Hamilton’s Tax Evasion strategies explained

Lewis Hamilton lived in Switzerland before moving to Monaco. Switzerland was considered a tax haven alongside Monaco. However, a change in the policy meant Hamilton moved countries to continue reaping the benefits. The Briton also applied the Isle of Man scheme when he bought a $20,000,000 Bombardier Jet, which helped him avoid $4,100,000 in VAT. 

However, the owner of a jet is allowed to deduct the VAT from the aircraft’s cost if the jet is used for business/commercial purposes. Hamilton also set up another firm in the Isle of Man to save taxes on his motorhome. Additionally, Lewis Hamilton denies evading taxes as he explains he earns his money in different countries, so pays taxes in different countries too. 

According to sportsrush.com, Lewis Hamilton told the Sunday Times, “What people don’t realize is that I pay tax here [in the UK]. But I don’t earn all my money here. I race in 19 different countries. So I earn my money in 20 different places, pay taxes in several different places, and pay a lot here. I am contributing to the country and, not only that, I help keep a team of more than 1,000 people employed.”

Watch this story: F1 Drivers That Don’t Live In the Tax-Heaven Monaco

What do you make of the words of Jackie Stewart supporting Lewis Hamilton?