FTT Verdict, Trust payments construed as earnings


An anonymised version of the First Tier Tribunal verdict was published by the Finance and Trbunals service today.  The 145 page document will take some reading but it concluded:

“the trust payments are to be construed as ‘emoluments’ for the purposes of the tax legislation”

For those without a dictionary to hand,… Emoluments: Synonyms earnings, pay, recompense.

I for one am absolutely shocked that Sir David’s confidence was misplaced on this matter.

Enjoy the game!

“having ascertained the real nature of the transaction, you cannot … disguise it by using camouflaged clothing”


‘it is wrong and an unnecessary self-limitation’ not to give regard to ‘the manifested intentions of the parties’ in the face of documents or transactions that are not ‘shams’

Orders are now open for the very first CQN Annual, get it here!

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  1. GlassTwoThirdsFull on

    Actually quite amusing that they have ended up liquidated WITHOUT the tax liability – the amount Green says he can raise via the IPO could easily have saved them. The only problem is that there will now be a major push by the MSM to equate this result with the illegal registration of players and try to say that there should be no punishment for breaking SPL rules.

  2. Gordon J ——-



    Based on a quick scan ——–



    1 —– No


    2 —- If the players were ” illegally paid ” then their registration was [ logically ] illegal . The relevant football authorities in Scotland are not renowned for their logic .

  3. EBTs now illegal in UK, awe naw.



    A few years ago it changed.



    I think.



    Anyone got any TSFM stuff to copy/paste?

  4. Am I right in thinking that the no matter whether they appeal, HMRC will now come after the likes of Ogilvie? I do hope so. Let’s hope he does the honourable thing (don’t laugh) and resigns immediately.

  5. St. John Doyle



    That’s the part that is of interest to us



    The rest is irrelevant



    Other than the fact that HMRC can now pursue all of the beneficiaries of the scheme for tax due …squeaky bum time for a number if ex players, staff and managers

  6. Awe_Naw_No_Annoni_Oan_Anaw_Noo on

    Decision not unanimous … One judge from three must have disagreed therefore HMRC considering appeal.



    Nicely stage managed for Sevco to complete the season and their share issue before any punishment is meted out ?



    Extremely bad news for football FFP and the british tax payer and british economy.




  7. it does not matter whether side letters were registered or not


    they will find a way out for them as has the judiciary.

  8. James Forrest is Neil Lennon! We are ALL Neil Lennon! on




    Also from the dissenting opinion mate, but it seems clear to me that rules have been breached left, right and centre in terms of contractual declarations.



    Over to the SPL inquiry now.

  9. C’mon the Hoops, a wee score draw would be most satisfying but a win would be even better.



    Hail! Hail! PMTYH



    Just think the huns have won the FTT, they’ll have all that extra money to buy shares in the new zombie-huns just before Christmas ;-)

  10. South Of Tunis,



    Thanks. So that means the club in liquidation doesn’t owe anything like as much as was though. Presumably that means that all other creditors will now get a little more of anything that’s left?



    And the SPL inquiry can find them guilty on the registration issue!

  11. When God willing I wake up tomorrow morning,them will still be dead and WE will still be in the Champions League.


    Roll on the game,


    Hail Hail

  12. Beamishismypint on

    Have to say the club’s official statement makes it sound like faceless administrators are the embodiment of the club – ‘our supporters’. I support the club not those employed as administrators!



    ‘We are very pleased that we are united with our supporters and pleased that we are so regularly involved in such a range of initiatives where the Club and our fans work together in the best interests of Celtic’.

  13. No reason given for the tribunal sitting in private.



    I suspected from the start that that decision suggested the huns would get the benefit of the doubt and the dissenting judgement suggests my concerns were well founded.







    ‘On the whole, in my quest ‘to find the realities of the arrangements


    that were agreed’ [Lord Morris], I place more reliance than my colleagues do, on the


    documentary evidence. As regards the oral evidence, so far as the corporate witnesses


    40 and the trustee representative of the Appellants are concerned, their Witness


    Statements convey to me an element of choreography, perhaps due to the active


    involvement of counsel in their preparation. More specifically, I have reservations


    about the credibility of certain witnesses, namely, Mr Red, Mrs Crimson and Mr Scarlet. The oral evidence has already been narrated in the majority Decision, and


    the Respondents’ major concern is noted (para 152 MD) regarding ‘the English


    practice (followed here) of Counsel drafting the initial form of Witness Statements’.


    In making my extra findings-in-fact, I have accorded greater coverage therefore to the


    admitted documentary evidence as providing a more realistic record 5 of the nature of


    the transactions. Obliterated in some instances and by no means complete,


    nonetheless the documentary evidence that spans over a decade provides a


    contemporary record of the transactions as they happened at the time, and affords an


    account of the true intention and role of the participants in the scheme.’

  14. Awe_Naw_No_Annoni_Oan_Anaw_Noo on

    The only creditors who will get anything if the result is not successfully appealed is HMRC ?




  15. Beamishismypint



    Will CFC chase up the allegation that the pols were implicating them in harassment of fans .?



    That aspect was strangely missing from the statement …..also how do the explain the fact that personal details of fans appear to be held by the police



    The statement is banal obfuscation imo

  16. On page 58 of the findings it states that “payments to certain players are taxable” i.e. they were illegal payments



    That my friends means that certain players contracts were not properly registered



    Whomever those players are and what games they played, will determine what titles will be stripped

  17. Awe naw



    That perhaps explains why they were keen to appoint there own administrators



    IMO this decision suits them ….they can pursue solvent individuals for money as opposed to an insolvent former football club

  18. Gordon J –



    Base on a quick read —— yes .



    The contractual stuff suggests that the registration issue will not be easily swept under the carpet — .



    Got to go ——

  19. Lennon n Mc....Mjallby on

    Is it possible the ex hun players get together to raise an action against former hun directors?

  20. This ruling means that BDO can seek to have the “loans” repaid in full by each recipient as they look to recoup as much money as possible for the creditors.


    Time to repay your loans huns……hehehe

  21. Beamishismypint on




    The fans are the club and nothing illustrated that more clearly than the worldwide reaction to the support at the Barca match. The GB have done an incredible amount for the club (though clearly not for certain nameless PR staff).




  22. The verdict that tax is due on some of the EBT payments means that income to players was not informed to the football authorities… Almost certainly this will mean sanctions for fielding improperly registered players.

  23. BSR



    That’s the main man o’ ra peeepil you’re traducing



    Hilarious that his appalling management did for them …

  24. From my quick reading it is clear that there are side letters (in the judgement as fact) and therefore illegally registered from a football perspective.



    Some of the payments are seen to have fallen foul of the EBT and emplpoyers NIC will be due on these (12.8% and interest/penalties).



    The rest are repayable – presumably to the Trust and by default the liquidators should the Trust legally disolve on liquidation.



    The individuals will now need to pay the tax and NIC on these, again with penalties and interest. And these could be substantial.



    HMRC may actually take this, but will depend how it affects the other cases that they are after. Dissenting decision is interesting and may give them some room to go again. Some of the dissenting decision is actually quite scathing IMO!

  25. bournesouprecipe



    Yes, the oldest fat young manager in the Western world has played his part to the max.



    The monies he lost by exiting Europe in such fine style would have saved them.



    Instead he finds himself now at the shaky helm of the good ship Sevco, another vessel heading for the rocks.



    God bless him.

  26. Bhoys,



    I can’t agree with the optimism re Nonmi-Smith. Surely if the payments are loans that is not a player registrations issue…?

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