The obstacle standing in the way of a final deal for the Canadian Grand Prix is tax, according to Montreal’s French-language daily La Presse.

The report said Bernie Ecclestone wants to receive the payments of the Quebec, Ottawa and Montreal authorities over the next five years but not pay federal tax. It is said the F1 chief executive is holding back his signature until he receives a written guarantee about the issue from the Canada Revenue Agency.

Additionally, Ecclestone, who will certainly become the event’s promoter, also wishes to take all the money generated by ticket sales and refund the sales tax portion at a later date. Canadian law stipulates that such amounts should not leave the country before the government’s portion has been paid.

Raymond Bachand, handling the governments’ F1 negotiations, said last Friday that “there are always complicated elements with a tentative agreement – which we have with Mr Ecclestone – when the lawyers put it down on paper… problems sometimes arise.”

La Presse cited a well-informed source used to dealing with Ecclestone: “At one point he’s going to say ‘I give you 24 hours to sign the agreement’ and he will arrange to be unreachable before the deadline.”

“Politicians always end up with blood on their knees,” the source added.

Federal Public Works Minister Christian Paradis however indicated he wanted an agreement “which respects the Canadian taxpayers,” while a spokesman for the Minister indicated that “taxation rules do not depend on a politician’s good will.”

photo credit ©DPPI

Grand Prix F1 du Canada Inc president Normand Legault said a “commercial dispute” with Bernie Ecclestone has been settled, and an “announcement is forthcoming” about the return of the race next year.

“I’ve always been confident of being able to resolve the dispute,” said Legault.

“I never doubted the Canadian race would regain its rightful place on the FIA schedule, and my discussions with F1 management led me to believe the event would return soon.

“The race is important not only for Formula 1, but also for the teams, manufacturers and sponsors.

“I am also happy for the Canadian Grand Prix’s many fans because they are true F1 enthusiasts who appreciate the real value of the spectacle and the competition.”

The Canadian GP, which had been part of the F1 World Championship since 1967, was dropped for this season as a result of a financial disagreement.  The race has been provisionally agreed for 6 June 2010.

The calendar is not expected to be confirmed until October and Ecclestone has yet to comment on Canada’s return.

Legault also announced on Monday that he is not planning to stay on as the race’s local promoter due to the “economic model currently prevailing in Formula One.”

Two years ago, Lewis Hamilton won his maiden F1 victory at the Canadian GP in only his sixth race, while last year Robert Kubica also clinched his first F1 win in Montreal.

photo credit ©DPPI