Will Lord Nimmo Smith’s SPL Commission report this week? I’ve no idea, but as the day draws near it is perhaps worthwhile reminding ourselves of the relevant matters already established by the First Tier Tribunal, which, reportedly, Rangers ‘won’. We will have more excerpts as the week progresses.
The decision was anonymised, so names, such as Mr Black, Mr Violet and Mr Gold are not the actual names of the people involved.
Excerpts from The Decision:
“159
The suggestion made on behalf of Rangers that Mr Black’s involvement did not extend beyond concluding an outline agreement and a specific overall figure, was not borne out in evidence. Given that the burden of proof rested on the Appellants, there was a dearth of evidence available to support the Appellant’s contentions about the nature and stages of the process of agreeing “deals” on the engagement of footballers. Mr Thomson referred to specific individuals. All sub-trust monies had been withdrawn as “loans” except in the case of Mr Gold’s sub-trust.
The side-letters, while not disclosed to the SFA, were in reality part of the player’s contract with the Club.
The players expected to receive the monies paid into trust. Mr Violet believed that the purpose of the Trust was to suit Rangers. So far as he was concerned, his lawyer had reassured him that the arrangement was legal. However, according to Mr Thomson, given that the burden of proof rested on the Appellants, it had not been shown that the side-letter benefits were other than part of the contract of employment of the players.
When recently the tax advantage of trust payments had ceased for Rangers, remuneration due to Messrs Maidstone and Mr Guildford was made via payroll. Rangers had promised to ensure that even if the trust arrangements ceased, alternative arrangements would be made to give the players their agreed net pay. That crucially was the underlying reality.
160
Mr Thomson complained that it was difficult to ascertain whether the player’s contract of employment started with both the disclosed contract and side-letter being signed, or at an earlier stage and then reduced to formal terms, since the taxpayers had disclosed only limited documentation.
The over-arching contract was the contract of employment and the side-letter was part of it. No explanation had been advanced for its being a separate document. The inference was obvious: it was secret and not to be disclosed.
161
Side-letters, of course, had not been registered with the football authorities, the SFA and SPL. The spirit of their rules was that the whole contract terms should be registered.
Suspiciously, no evidence was led as to who decided that the benefits in terms of the side-letters should not be registered.
Non-registration of side-letters was incompatible with both authorities’ policing and disciplinary powers. For example any fines imposed on players would customarily reflect the disclosed wage.
Nondisclosure would thwart the authorities’ powers.
163
On any view, Mr Thomson argued, Rangers could have sought a ruling from the SFA or SPL about disclosure of side-letters but, clearly, they had chosen not to do so.
There was a conscious decision to conceal their existence, and that extended even to the Club’s auditors.”
This evidence clearly establishes the conduct by Rangers in relation to side-letters and player contract registration, the SFA and SPL rules, and Rangers detrimental action on the football authorities powers.
More than this, the matter of concealment is addressed, from both football authorities and the club’s auditors.
While “suspiciously, no evidence was led as to who decided that the benefits in terms of the side-letters should not be registered”, the SFA president, who was a Rangers director when EBTs were introduced, declared himself “somewhat vindicated” by this decision. You may feel otherwise.
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Awe_Naw_No_Annoni_Oan_Anaw_Noo – He strenuously denies a predilection for Camp Coffee though. (thumbsup)
Gonna get ye
@ RetroCeltic
Fine article Paul,
“163
On any view, Mr Thomson argued, Rangers could have sought a ruling from the SFA or SPL about disclosure of side-letters but, clearly, they had chosen not to do so.
There was a conscious decision to conceal their existence, and that extended even to the Club’s auditors.”
This evidence clearly establishes the conduct by Rangers in relation to side-letters and player contract registration, the SFA and SPL rules, and Rangers detrimental action on the football authorities powers.
More than this, the matter of concealment is addressed, from both football authorities and the club’s auditors”.
I find this part of interest. Are the auditors not obliged by law to show “an honest and true state of financial accounts” Does this have any legal implications?
Dan
mickbhoy1888
13:48 on 25 February, 2013
‘Speaking of anonymity I see that the flyer handed out before the game yesterday was authorless’
I think you might mean anonymous.
I’m sure someone must have written it.
There are many striking similarities between sevco and dead club, their tolerance of sectarianism from their following hordes being the primary one, the sevco CEO and manager both had the opportunity over the weekend to Lay down a marker, both failed miserably, the manager knows the score, he takes the media plaudits for supporting SCIAF portraying himself as some open minded sportsman whilst the truth is he’s a coward who historically and currently allows and at times encourages his sectarian followers. The cheeky chappie with all the patter, is in fact as bad if not worse than those espn outed at the weekend.
BMCUW
thanks, perhaps someone will forward it on to me?
V
Ernie
Lol very droll.
Auldheid 13:44 on 25 February, 2013……….
You went to Charlotte Street?????
TBM
natknow at 13.08
why did radio scotland news “go mental”?
SSN……………………………………………..Div Four Club in real world record crowd.
Well done Bradford
Wembley att; 82, 507
A sevco supporter just walked past me wearing the full strip ,scarf the lot, whilst trying not to laugh i found myself singing ‘ah sevconia ‘ as in the advert for covonia cough mixture . Think i got away with it .
Snake Plissken @ 13 51.
I rather liked Lincoln [ it is a bit heavy on the tub thumping though]
I was disappointed with Seth MacFarlane —- bit lame -but did like this-
” I would argue that the actor who really got inside Lincoln’s head was John Wilkes Booth ”
Last film I saw was Hitchcock [ things take time to get here ] I was really disappointed with it . As an insight into Hitchcock – it is nowhere near the excellent BBC /HBO thing –The Girl..
Thats what I hate about Ikea Horsemeatballs..you get them home and there is always a “bit” missing!
Sevco blame Dundee United fans for sectarian singing at Berwick.
Meanwhile, the Sevco Supporters Trust demand an apology from Artur Boruc for his appearance in Newcastle just 24 hours after the match at Berwick.
bsr @ 13.56
Say what you like about big Dianbobo but he certainly knew what a football boot is meant to look like.
The more I read Paul67’s article today, the more I find myself thinking, why is this taking so long? I can’t come up with any comforting solutions.
The last movie I watched (at the movies) was The Hobbit. Brilliant!
The last dvd I watched (at home) was Skyfall. A waste of a tenner and 135 minutes of my life I won’t get back.
Motherwell tickets for Wednesday night’s match are available to STH until 12noon on Wednesday.
CFC
johann murdoch
worst one yet, you won’t get away with that……………………………………………furlong
SOT
If you’ll excuse the pun I thought Lincoln was too Hollywood.
I liked that Hitchcock movie but didn’t see The Girl so cannot compare.
Need to see Amour though. I refuse to see Les Miserables – Russell Crowe trying to sing is a stretch too far for me.
Ntassoolla
Language!
natknow – “we welcome the paper-chase…”
13:08 on
25 February, 2013
Wow. Radio Scotland news just gone mental!! Haha!!!
>>>>>>>>
Why ….?
Ikea………………………….say they are confident that meatball contents are safe, and as usual are only contain disoriented or totally lost shoppers, retrieved from Braehead.
Paul67
All the quotes in the article above are references to (or direct quotes from) arguments made by the HMRC council. A bit disingenuous to reproduce them like this as if they form any part of the ruling made by the FTT.
Where you’ve said “Excerpts from The Decision:” you might as well put “Some guy once said:”.
Having said that, as I recall, the FTT didn’t actually make any comment on the sections you’ve quoted, so they haven’t been discounted either by the FTT. I believe they were ignored as irrelevant to the tax status of the loans.
Gene’s a Bhoys Name
I don’t think too many on here read his posts, so probably no harm done.
JC
I know real boots, real butter, real bread, back in the day everything was so much more black and white.
Copy of a Rangers side letter, from the FTTT report. Nowhere does it mention loan. It clearly lays out a contractual entitlement and an undertaking by Rangers to fund this
‘I confirm that the Board of Rangers Football Club (the Club) will recommend to the Trustees of the Murray Group Management Remuneration Trust (MGMRT) to include you as the protector of a sub-40 trust and to fund this sub-trust with a total of £500,000 net as follows, £125,000 in November 2001 and 2002 and £125,000 in March 2002 and 2003 or earlier at the Club’s sole discretion, subject to you being a registered player with the Club on each due date
The Club undertakes to fund the MGMRT to the extent necessary to permit the trustees of the MGMRT to carry out this recommendation ”
What Rangers QC told the FTTT
“More controversially, what should the tax consequences be where the employee opts instead for an alternative such as a Remuneration Trust benefit?
Then, Mr Thornhill submitted, the employee should be taxed not on the emolument but on the benefit. It was irrelevant, he continued, whether the Remuneration Trust benefit was contractual.
He conceded that where it derived from a (footballer’s) side-letter it was contractual, but not in the cases of bonuses paid to employees of other Murray Group companies.”
Rangers therefore have already conceded that the side letters are contractual. There are multiple examples of side letters which refer to bonuses being paid through the EBT
Not sure what defence there can be to that. ……..”We lied to the FTTT, just ignore whatever we said there”
Now I’m pretty sure Charles Green could say that with a straight face, but a respected QC ???
Gene’s a Bhoys Name it was a direct quote but point taken. I’ll euphemise in future.
Philbhoy – Miaaaooowww!
Philbhoy – It’s just the beginning!
14:25
I don’t think too many on here read his posts, so probably no harm done.
Coffee all over the show !!! -))))
Hoops gets his move to England –
Swindon have appointed Gary Hooper as their new commercial director
Snake Plissken .
Amour .
I thought Amour was truly excellent .. Sad / disturbing / often comical and strangely uplifting. Fabulous acting.. As we left the cinema , Mrs S of T said —–
” in 20 years time , that could be you and me “
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS
11:14 on 25 February, 2013……….
Am I surprised??? NAW!!!
Corporate cleansing gone all tickle my belly…
Not even about the product on the pitch anymore. Felt that this time was ‘acoming’ when I first heard ‘so called Celtic supporters’ boasting about the P&L. No, not ‘the one minute manager’ but the healthy balance sheet. God save us!
Regards & Hail Hail
TBM
I’m a fan of Ntassoolla’s posts.
He/she provides a different perspective and prompts me to purse my lips, half shut my eyes and consider the world from a different perspective.
Eventually I come back to thinking that I was right, but that is understandable as my perspicacity, knowledge and cognitive abilities are unrivalled. If it wasn’t for my modesty who knows what I might have achieved.
Anyway, I enjoy his posts……so he has got one reader at least…..and what a reader to have.
Hail Hail
Estadio
Barcabhoy – did your “nuclear” story ever get released?
Ernie @ 14.00
I just love the pedantry on this blog!
HH
I sexistly (I nearly said ‘sexily’ but hey I was caught my reflection on the screen as I typed), lapsed into using the default he instead of he/she. Apologies to Ntassoolla if he is not a he but a she.
Hail Hail
Estadio (all man, believe me)
“Then Mr Thornhill submitted, the employee should be taxed not on the emolument but on the benefit. It was irrelevant, he continued, whether the Remuneration Trust benefit was contractual. He conceded that where it derived from a (footballer’s) side-letter it was contractual, but not in the cases of bonuses paid to employees of other Murray Group companies.”
Barcabhoy
Agree your quoted sections are much more relevant than the arguments captioned in Paul67’s article.
The main remaining question for LNS to answer following on from the FTT is whether funding a trust for the benefit of the player constitutes a payment that needs to be included in a player’s registration with the SFA. I rather suspect that it would, but who knows?