Quote:
Originally Posted by Oldtony
On the other side of this spending or investment what would be te legality of an F1 team charging the parent manufacturer for the use of technology developed by the F1 team transferred to commercial products?
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I can't see a problem with this. At best it generates funds for the team.
It looks like the proposed system does try to equitably share F1 revenue as generated by FOM, but does not trying to restrict other funding streams in any way.
Quote:
Originally Posted by Mike Harte
As far as cost capping is concerned, I am really sitting on the fence; however, I have been playing devil's advocate in this discussion and continue to do so with my next observation.
Currently in Europe, we have corporations, many of which are American owned such as Apple, Microsoft and McDonald's, who participate in the most elaborate creative accounting to minimise their taxable revenue by offsetting costs to parts of their structure that reside in lower or more favourable tax environments. And it provides employment to an army of tax accountants and lawyers.
It is not beyond the wit of the likes of Mercedes to emulate this behaviour in their quest to win "at all costs"!
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You mention playing games with respect to tax laws which is different than tracking costs. But.. your point still stands. I think this comes down to how how comprehensive the auditing system that is put in place. Just like the technical regulations, teams will play in the gray areas of the cost cap regulations. I expect just like with the cars there will be creative ideas that will be tried, then challenged and then outlawed.
Richard