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Montreal daily La Presse reported on Wednesday that the fiscal issues standing in the way of the Canadian Grand Prix have been settled, thereby green-lighting an official announcement which may come this week.
Bernie Ecclestone was demanding written guarantees that he would not have to pay local taxes on the public money granted to the event, since British taxes would also be paid. Canadian law provides for such amounts to be reimbursed once proof of tax payment in another country has been received. However, F1's chief executive had no interest in waiting several months before the cheque arrived.
After fiscal lawyers spent weeks looking through different scenarios, the solution agreed upon will see the public monies transferred to the organisation which covers the islands including the Circuit Gilles-Villeneuve, and will in turn handle the tax payments to the municipal, provincial, and federal levels – leaving Ecclestone out of the tax paperwork.
Before being dropped from the 2009 season, for three decades the Canadian round had been presented at the famous Circuit Gilles-Villeneuve to sell-out crowds, and its time slot on television made it one of the most-watched races across the globe.
It is expected that the return of the Canadian Grand Prix will be confirmed this week by Montreal Mayor Gerald Tremblay, with the next edition taking place on 13 June 2010 as indicated on the provisional calendar released recently. The current deal will cover the next five years.
The FIA subsequently announced that it is "shortly expecting confirmation from Formula One Management" regarding the Canadian race, and indicated that the final 2010 calendar "will be adopted at the December meeting of the WMSC (World Motor Sport Council)."
