Excerpt from Constantin Medien v Bernie Ecclestone & Ors. Day 7 on 6 November 2 !" Q.

(Philip Marshall, QC for Constantin Medien) #ell$ %e &aven't (ot too many doc)ments re(ardin( t&e tax investi(ation re(ardin( yo). B)t %e &ave one or t%o. *nd t&ere's one in b)ndle D26$ if %e co)ld &ave a loo+ at t&at. ,a(e 7-.". /&is is a note of a meetin(. A. (Bernie Ecclestone) 0es. 1. 2t %as on 2. November 2 .. *. 0es. 1. *nd t&ere's Mr Datoo. /&at's %&ere 2 (ot &is name from. *. 0es. 2 33 no% 33 yes. 0es. 1. 4o yo) +no% %&o 2'm tal+in( abo)t no%$ do yo)5 *. 2 do$ yes. 2 never spo+e to &im abo)t t&is6 b)t any%ay$ 2 (ot m)ddled )p 33 2 (ot m)ddled )p %it& Mr 33 1. #e %ill see in a moment. *. 0es. 1. *lso present Mr 4+yte and Mr ,attinson. /&ey're t%o 7even)e officers. *. 0es$ 2 remember t&em very %ell. 1. /&is is a meetin( t&at seems to ta+e place 8)st aro)nd !.2.. *nd it's ta+in( place at s&ort notice. 2 8)st %ant to loo+ at t&e para(rap& at t&e end. *. 0es. 1. 9Mr Datoo &ad spo+en to Mr 4tep&en M)llens %&o did not believe t&ere %as a problem %it& t&e section 7": iss)e. ,attinson said as far as &e %as concerned &e &ad not formed a &ard and fast vie% at t&is sta(e and %as still see+in( to (at&er facts. Only t&en %o)ld 7even)e and C)stoms decide if t&ey %anted to mo)nt a c&allen(e. /&e s)ms involved %ere very$ very si(nificant. Mr Datoo contin)ed t&at &e %as loo+in( to find some %ay of clearin( t&e iss)e$ alt&o)(& &e accepted t&at t&e potential s)ms %ere very s)bstantial.9 ;)st pa)sin( t&ere for a min)te. /&e first point is t&at t&at does rat&er s)((est t&at t&e 7even)e officers %ere loo+in( for facts$ not 8)st alle(ations6 correct5 *. 2 don't 33 1. #o)ld yo) li+e to loo+ at it a(ain5 *. 2'm not s)re %&at alle(ations yo)'re referrin( to. 1. 2'm 8)st tal+in( in (eneral. *. *&$ in (eneral$ o+ay. 1. <o% t&ey %or+5 /&ey don't %or+ on t&e basis of 8)st spec)lation or alle(ations6 t&ey loo+ for facts. /&ey try to establis& %&at t&e facts are. *. <mm. 1. Do yo) a(ree5 *. #ell$ accordin( to t&is$ yes. 1. *nd so if Dr =rib+o%s+y %as (o alon( to t&em %it& a %&ole load of alle(ations$ b)t did &aven't any &ard facts or evidence to bac+ t&em )p 33 *. <mm. 1. 33 it %asn't really (oin( to &ave very m)c& infl)ence$ %as it5 *. 2 don't +no%. 2've no idea. 1. 0o) said a moment a(o$ per&aps rat&er &astily$ t&at yo) &adn't spo+en to Mr Datoo. B)t if yo) loo+ at t&e next pa(e$ pa(e 7-.-. /&e first para(rap&$ it records t&at> 9Mr Datoo as+ed for t&e opport)nity to contact ?yo)@.9 *. <mm$ &mm. 1. *nd apparently &e &ad come bac+ after &avin( spo+en to yo) for abo)t &alf an &o)r. *. 0es. 1. *nd &e said t&at t&is %as acceptable to Mr Ecclestone.

*. 0es. 1. 4o &e m)st &ave been liaisin( %it& yo) re(ardin( all of t&is. *. #&at did 2 spea+ to &im abo)t5 1. #ell$ it %o)ld seem t&at yo) m)st &ave spo+en to &im abo)t t&e fact t&at t&e 7even)e %ere see+in( to (at&er facts re(ardin( %&at is referred to as t&e section 7": iss)e. *. 2 don't +no% %&at t&e section is. 1. /&at seems to be a section related to special investi(ations re(ardin( tax avoidance and t&e settin( )p of arran(ements s)c& as t&e tr)st and %&et&er or not yo) &ad any control over t&e tr)st. /&at %o)ld be potentially a relevant matter$ %e're told. *. <mm. M7 ;A4/2CE NE#E0> 2 %onder$ Mr Mars&all$ %&et&er Mr Ecclestone s&o)ld read on beca)se t&at possibly s&eds li(&t on %&at t&e conversation may &ave been. M7 M*74<*BB> Of co)rse. 7ead on to t&e last para(rap& on pa(e 7-.-. *. 0es. 2 s&all read. C,a)seD. M7 ;A4/2CE NE#E0> ;)st %&ile Mr Ecclestone is doin( t&at. 2s t&is a f)ll note or a redacted note5 M7 M*74<*BB> 2'm not s)re$ my Bord. 2t's not somet&in( E 2 %ill ma+e enF)iry$ b)t 2 believe it is a f)ll note. 2t's a disclos)re$ obvio)sly$ from t&e defendants' side rat&er t&an o)rs. M7 ;A4/2CE NE#E0> 0es. 2 see. *. C,a)seD. 2 still don't )nderstand %&at t&is is anyt&in( do %it& me as+in( Mr Datoo anyt&in( abo)t. M7 M*74<*BB> 2 t&in+ %&at is bein( said on yo)r side 33 *. 0es. 1. 33 is t&e section 7": iss)e is tied )p %it& investi(ations re(ardin( yo)r relations&ip %it& t&e tr)st and %&et&er yo) &ad any control over t&e tr)st. *nd$ if yo) did$ t&en it mi(&t lead to an assessment and a tax c&ar(e. 0es5 *. *nd for me to pay =rib+o%s+y not to inform t&em. 1. *nd for yo) to pay a lot of tax. *. Not to inform 33 =rib+o%s+y not to ma+e more tro)ble. 1. Bet's 8)st ta+e it in sta(es. Do yo) remember t&at t&ere %ere disc)ssions %it& Mr Datoo abo)t on(oin( investi(ations re(ardin( yo)r position in con8)nction %it& t&e tr)st5 *. No. 1. No. *ll ri(&t. 0o) see$ t&ere &ad been a tax investi(ation re(ardin( yo) and t&e tr)st. /&at &ad been (oin( on since !:::$ &adn't it5 *. 2 don't remember. 1. /&at's %&at Mr M)llens &as said. *. #ell$ if &e said t&at 2'm s)re &e's ri(&t. 1. *ny reason to disa(ree5 *. 2've no idea. !:::5 1. Do yo) %ant to see it5 2 %ill s&o% yo). *. No. 2 believe %&at yo) say. 1. 7i(&t. ,er&aps %e 33 8)st so t&e co)rt &as t&e reference. Bet's 8)st +eep t&at file to &and. #e %ill 8)st (o to t&is reference very F)ic+ly. 2t's in b)ndle D--. 2t is pa(e !" 22. *. 0es. #e &ave t&at. 1. 2t is t&e last para(rap&. *. 0es. 1. 9Mr Ecclestone &ad a tax a)dit from !::: to Marc& 2 6. /&e tax a)dit for &is t&en %ife$ Mrs Ecclestone$ even lasted from t&e end of !::: to Marc& 2 G.9 *ll ri(&t5 *. 0es. 1. 4o t&at's %&ere 2 (ot t&at date from.

*. *& yes$ yes$ yes. =ood. 1. 4o do yo) a(ree t&at t&at's li+ely to be ri(&t5 *. 2 don't remember$ b)t it probably %as ... 1. 4o an investi(ation &ad been (oin( on for somet&in( li+e six years already. *nd 2 s)((est to yo) %&at act)ally does &appen %&en t&e 7even)e investi(ate t&ese sorts of t&in(s is t&at t&ey as+ yo) for information. 2s t&at not yo)r experience5 *. 0es. 0es. 1. /&ey 8)st +eep on as+in( yo) for information. *. 0es. 1. *nd$ based on t&e information yo) (ive t&em$ t&ey t&en ma+e a decision to raise an assessment or not to raise an assessment. *. 0es. 1. Or sometimes t&ey tal+ to yo) abo)t a settlement of yo)r 33 of t&e overall position. *. <mm. 1. #&ic& is$ in fact$ 2 s)((est$ %&at &appened %it& yo)r %ife$ beca)se s&e ended )p %it& a settlement %&ere s&e paid =B, ! million. Do yo) remember t&at5 *. 0es. *nd s&e reminded me of it. 1. 4o if t&ere &ad been an alle(ation from Dr =rib+o%s+y re(ardin( yo)r relations&ip %it& t&e tr)st 33 *. <mm. 1. 33 and t&at &ad (ot to t&e 7even)e. /&e next sta(e %o)ld be for t&e 7even)e$ as part of t&e on(oin( investi(ation t&at %as already t&ere 33 *. <mm. 1. 33 to say> %e've &ad t&is alle(ation. ,lease provide )s %it& information in relation to it. *. <mm. 1. Correct5 *. Correct. 1. *nd yo) %o)ld &ave come bac+ %it& a statement from yo)$ probably from B)c *r(and. *. 0es. 1. Hrom a n)mber of people$ %&o %o)ld be able to bac+ yo) )p. *. 0es. 1. *nd said> t&ere's not&in( in t&is alle(ation. 2t is false. 2n fact$ yo) co)ld &ave (one f)rt&er. 0o) co)ld &ave said> and also$ %&at is more$ t&is (entleman %&o &as made t&is alle(ation &as made a %itness statement sayin( completely t&e contrary t&in(. *. #&ic& 2 didn't +no% at t&e time. /&ey didn't ma+e t&is statement. *nd &ad 2 33 if t&is %&ole t&in( &ad &appened or co)ld &appen in a co)ple of %ee+s time6 and 2've &ad time to t&in+. 2 didn't t&in+ it t&ro)(& properly. <ad 2 &ave t&o)(&t it t&ro)(& properly$ for s)re 2 %o)ld &ave not paid &im. 1. 0o) see$ 2 s)((est to yo) any alle(ation %&ic& %as )ns)pported by evidence or proper material to bac+ it )p 33 and 2 mean by t&at evidence 33 %as not (oin( to ta+e matters very far$ as far as t&e 7even)e %ere concerned. /&ey %ere only (oin( to act on t&e basis of &ard facts$ proper evidence and t&en on any explanation t&at yo) (ive t&em. *. 2 s&all remember t&is. 1. #ell$ 2 s)((est to yo) t&at %o)ld &ave been obvio)s and %o)ld &ave act)ally been told to yo) by yo)r tax advisers. *. 2 explained to yo) %&o my tax advisers %ere. 2 didn't as+. 2'd made )p my mind t&e easiest t&in( to do$ rat&er t&an &ave an assessment of 2 billion$ 2'd rat&er pay =B, ! million.