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Aston Martin fined for procedural breach of F1 cost cap

The FIA has given Aston Martin a fine for the procedural breach committed by the team, following its reporting of the 2021 accounts.

Aston Martin has entered into an Accepted Breach Agreement (ABA) and been handed a $450,000 fine for their breach of the 2021 cost cap. While they didn't go over the $145 million cost cap limit or gain any competitive advantage from committing the breach, they did commit a procedural breach of the rules. Procedural breaches can include late submissions, failure to submit interim documents, failure to cooperate with written requests from the FIA Cost Cap Administration, or submitting paperwork which is deemed inaccurate, incomplete, or misleading. The FIA states that Aston Martin co-operated through the accounting review process and that it did not wilfully conceal information or act in bad faith, dishonesty or in a fraudulent manner when submitting its documents. In a statement, the governing body says: "The decision of the Cost Cap Administration to enter into the ABA constitutes its final decision resolving this matter and is not subject to appeal. Non-compliance by Aston Martin with any terms of the ABA will result in a further Procedural Breach under Articles 6.30 and 8.2(f) of the Financial Regulations and automatic referral to the Cost Cap Adjudication Panel."

Breach a result of complex cost cap rules

As previously exclusively revealed by RacingNews365.com , the procedural breach for the team centred around a number of administrative accounting protocols. This was as a result of variations in complex regulatory interpretation. This included costs in respect of the new F1 Team headquarters, R&D tax credits, a new F1 simulator, wind tunnel fees, certain signing bonus cost, costs concerning Transferable Components, Used Inventories, service desk costs, catering services, costs of desks and chairs, cost of services rendered by sponsors, and cost of services rendered by outsourced personnel, according to the FIA. Team Principal Mike Krack noted previously that the cost cap is a 'complex matter' and believes there should be more clarity in the future. "It's complex. It's a complex set of regulations and it is not frustrating it's it shows us that we have to take to to better job the future that we are not having such issues," Krack told media. "But at the end of the day, I think the probably the most important is that we were under the cap and the rest is procedure."

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