Frankie Dettori Revealed as Participant in Controversial Tax Avoidance Scheme

Frankie Dettori has been unmasked regarding his involvement in a widely scrutinized tax avoidance scheme created by a former adult film star.

The three-time champion jockey has been embroiled in a tax dispute with HM Revenue & Customs since 2019, which has now come to light. Dettori, now 53, became part of a tax scheme initiated by Paul Baxendale-Walker, a former lawyer and barrister.

Baxendale-Walker, known for his appearances in adult entertainment and formerly associated with Loaded magazine, established a “remuneration scheme” enabling affluent clients to create a trust purportedly intended to lower their income tax obligations. This scheme was declared a “sham” by a tax tribunal in the previous year.

Paul Baxendale-Walker

Dettori contested HMRC’s denial of “deductions for income tax purposes” linked to the trust scheme. Seeking to keep his case private, he applied for anonymity in 2021 and requested that the initial tax tribunal hearing proceed in secret.

The initial approval for Dettori’s anonymity was granted to protect his personal life and maintain confidentiality, yet this was challenged by HMRC and The Times, which argued that it violated the principle of open justice.

In October, Mr. Justice Mills, along with Judge Thomas Scott, dismissed the anonymity request, stating that Dettori failed to provide sufficient rationale for why his right to privacy should take precedence over the press’s rights to freedom of expression and open justice.

Although Dettori withdrew his appeal against the tax ruling, the anonymity provision remained in place until Monday, allowing him time to consider further legal steps.

Dan Neidle, from Tax Policy Associates, who backed the movement to lift Dettori’s anonymity, remarked: “It is quite concerning for Dettori to be linked with this infamous tax scheme. I would be very upset with my advisers if they had recommended Baxendale-Walker.

“It is unacceptable that Dettori maintained his anonymity for such an extended period. Engaging in legal proceedings against HMRC while expecting to remain anonymous is not compatible with the ideals of open justice. If there are undisclosed court cases involving affluent individuals, it undermines our justice system.”

Following the recent ruling, Dettori stated: “A few years ago, I hired professional tax advisors to manage my family’s financial matters. A structure was created that I was informed was cleared by HMRC.

“Years later, HMRC is now contesting that structure. My previous advisors have been dismissed, and my new team is diligently working to rectify the situation while liaising with HMRC for a swift resolution.”

An HMRC representative commented: “We welcome this decision, emphasizing a significant victory for open justice. We are dedicated to ensuring everyone fulfills their tax obligations according to the law, irrespective of their wealth or status.”

Dettori was the champion flat jockey in 1994, 1995, and 2004 and announced his retirement in 2022, although he continues to compete professionally in the United States.

This tax dispute is classified as a civil matter, and there are no allegations of criminal behavior.

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