Formula 1 impressario Bernie Ecclestone is the subject of a tax investigation due to his connections with German banker Gerhard Gribkowsky.

Gribkowsky is on trial for allegedly receiving a bribe from Ecclestone to facilitate the sale of Formula One to CVC Capital Partners in 2006.

But Ecclestone insists that he made a payment from his family trust to Gribkowsky in order to avoid an unfavourable ruling from the UK tax authorities.

Bernie Ecclestone is Facing a Tax Investigation

Gribkowsky had received the payment after suggesting that Ecclestone might have to pay a huge tax on the family trust, which is known as Bambino. Ecclestone denies that this payment was a bribe, but instead constituted a payment to prevent false accusations of tax evasion.

Ecclestone said: “Paying £8m is cheap compared to what it could have been – £2bn, or more. The money was paid because if the HMRC thought that I was running the trust, then they could have made me pay.”

Ecclestone is facing a separate civil claim over the payment as well as an investigation into the $41.4m commission paid to him by BayernLB bank.

Sven Thomas, lawyer to Bernie Ecclestone, claims that his 200-page legal submission will make it clear that the payment by Ecclestone was not a bribe.

“You could say Bernie has been the victim here. There was a hidden threat, a pressure – a sort of shakedown. Bernie’s Trust Bambino wanted to ensure Bernie would continue as CEO because they believed, if he didn’t, the value of their assets would come down. That is why separately they also paid Mr Gribkowsky.”