The Upper Tier Tribunal (UTT) sitting on HMRC v Murray International Holdings (MIH) has ordered HMRC’s demand for unpaid tax to be reduced substantially. Claims Sir David Murray Employee Benefit Trust should be taxed were dismissed, but the UTT was not prepared to endorse that guaranteed bonus payments paid to Rangers players should not be taxed.
During the First Tier Tribunal MIH acknowledged tax should have been paid on EBTs given to a further five players, who were removed from the judgement (although the tax was never paid). Lord Nimmo Smith’s SPL Inquiry found Rangers guilty of not disclosing side-letters given to players which contractually bound EBT payments and arrangements. The Inquiry issued Oldco Rangers with a fine of £250,000. Newco Rangers agreed to pay all of Oldco’s football debts as a price to gain entry to the SFA and league structure. It is anticipated this fine will be collected in the event the club reaches top flight football.
Rangers did not dispute they operated an illegal Discount Options Scheme, which was uncovered by Craig Whyte’s investigators, when he carried out due diligence before buying the club from Sir David Murray. Tax due on this scheme was never paid.
Once in control, Whyte continued to operate the club’s tax arrangements in similar ethical standards. He failed to pay VAT, PAYE or National Insurance. Several hundred other creditors were left in the lurch as the club was liquidated.
At its heart, this is a morality tale. The first lesson which should be drawn is that it is far better to disclose your tax arrangements to the authorities than to hide them. When Celtic employed Juninho, who had an earlier EBT, they disclosed this fact and subsequent transactions to HMRC (Celtic never issued rule-breaking side-letters either).
Perhaps the most important lesson is not to allow debt to get out of control. Armed with the Discount Options Scheme and tax not paid on contractually guaranteed bonuses, HMRC were legally bound to pursue the club for money the tax payer was due – and will almost certainly never be paid.
Once that train was in motion, the club was at the mercy of its bank. MIH held substantial commercial property assets at this time, when the UK commercial property market took an average 45% nosedive. Then the bank itself (HBOS) was sold, exposing legacy arrangements to full commercial scrutiny.
Even then, even then, Rangers could have used the bonus of Champions League income to either rapidly pay-down their bank debt, or retain as a hedge against the consequences of the on-going tax dispute. Instead Walter Smith returned to the transfer market, spending what he could to keep his nose in front of Celtic.
This was an arrogant and fatal mistake.
When Whyte put his £1 on the table there was nothing the Independent Board Committee could do to dissuade Sir David from selling, but by then all the cards had been played, an insolvency event was on the horizon unless someone coughed up £18m to repay the overdraft, and no one was prepared to do this.
In the unedifying final days the club was reduced to turning, cap in hand, to lifelong adversaries to ask for rule changes which never arrived.
Despite all of this, humility among this lot is scarcer than a fully paid up tax receipt.
It took dozens of people working to promote Rangers on-field activities to kill the club. Those who failed to disclose side-letters, those who allowed debt to get out of control, those who sat on boards which endorsed Smith’s spending knowing the potential consequences, those who campaigned against the people who disclosed Whyte’s background, were all necessary for this outcome. Their reputations are now co-dependent
Celtic fans, HMRC nor the SFA killed Rangers. None of them* knew about the Discount Options Scheme, the undisclosed side-letters, the unpaid VAT, PAYE or NI bills. None of them decided to spend more than was prudently possible.
Killing Rangers was an inside job. The biggest rivalry in football is gone; we won, by an avalanche of own goals.
*apart from SFA president Campbell Ogilvie, who knew exactly what was going on.
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Hebcelt I will reiterate to you that this is the worst news night I have ever seen. The scottish participants are particularly poor. There is no quality to this discussion and it is embarrassing for all of us. I make no apologies for my point of view on this and actually it’s impartial from an independence perspective. It’s cringeworthy.
Bankiebhoy1 yes I made up the idiot without the savant quote but I am pretty sure others beat me to it……
The Orion bloke owns Ross county does he not?
HH jamesgang
Scott Hastings utters the immortal line if you haven’t done anything wrong you have nothing to fear………,.oh my god.
PTS
It has been some smoke black cloud that I watched from Dalmuir
Gavin and Scott Hastings are on a run on the portobello beach.
Look Scott, there’s a dead seagull says Gav…..
Where? Says Scott, looking up to the sky……
No seagulls were hurt in the making of this cr&p but believable joke. Unlike during some recent ‘cultural celebrations’
HH jamesgang
Wee Joan is a stoatir. Only the inclusion of the lovely Annabelle would make this panel better.
Hubba ding!!!!
A Ceiler Gonof Rust
23:16 on
10 July, 2014
‘Just waiting for a question for Joan from a guy wi a knob shaped like a turnip.’
———
I decided not to ask any questions tonight. :-)
ACGR
Your internet history section must be an eye watering joy to behold!!!!’
HH jamesgang
jamesgang
23:24 on 10 July, 2014
That’s Roy McGregor is it not, but I believe he is involved in one of the northern clubs.
Is Mcgregor and Savage not part of same group ?
67…,
I’m no impressed with the latest on res 12, the long and short is nothing has happened, except for a lot of hot air and blah blah blah, we are no further on than two hours after the resolution.
I’m home soon and am calling the first serious formal minuted meeting, shame really but all you can do is work in good faith. We are now eight months on from the AGM and we’ve drank coffee, ate biscuits, babbled, led to believe serious deliberations are taking place at board level, without any proof the deliberations actually support the resolution beyond lip service.
Nothing has happened and that is sticking in the craw. Really, who wants the naysayers to be right, I dont even believe they want to be right on this, it will mean they want the support copulated.
This should have probably been said before the season ticket renewal period but we dont want to be portrayed as holding the club to ransom or the baddies in any way, all we want is representation from our responsible representatives to do their duty. Now I’m thinking we need to force that, again a shame, really why should we need to ? They are meant to be Celtic supporters FFS
Good Lord – an agony aunt on question time – how embarrassing
Orion Group diddled me out of money on a job I did at Hoogovens Steelworks in 1991. That fanny is first against the wall the bassa.
Just flicked it onto the bbc iplayer there as I thought you were all pulling my leg at who was on the panel.
Question Time,the biggest issues discussed by the biggest names.
Oh dear God,they boobed big time wi this lot. That’s a disgraceful line-up for a serious show.
Jamesgang………….
I’ve met the big chap, decent cove.
The ruck ‘n’ maul may have taken its toll tho’…………
;)
HH
Lowest quality news night ever. Fecking Joan Burke. A reason fro voting no on its own.
The whole world is looking forward to the WC final. Except if youre Palestinian then I guess you dread it. Usually such worldwide attention initiates the next phase of their continuing Genocide by Israel
The fire is on the south bank of the river. I parked at the Station Bar and walked down to the river, it’s really quite spectacular.
Cowiiebhoy, I think MgGregor Engineering was taken over by or morphed into orion group. A thieving bastard masonic lot that diddled lots of working men back in the nineties.
Canamalar. I never wanted to be proven right and your post is the most serious problem I have ever felt with regards to celtic, if celtic screw up res 12 we all have very serious questions to ask of those who run celtic. It’s not good.
Oh gosh, darn it!
Scary!
BMCUWP, that’s unfair, wee Joany is a sex kitten. FFS.
Hastings is a phoney!
Cowiebhoy
Not for the 1st time I think you may be right and I may be wrong!
MeaCulpaCSC!
HH jamesgang
ACGR,
Did or does Orion group, not have a recruitment agency, which they are both involved in ?
Made lots of money in oil industry, supplying labour around the world ?
Hail Hail and good to see you’ve fully recovered from weekend :-)
MARGARET McGILL
Latest count is around 90 killed so far.
Shocking.
Just catching up…………
Speirs “self immolation”.
Burn,burn,burn you……………
Psssssssst
Campbell Ogilvie is still there!!!!!!
Tee hee her tee her
Integrity
Don’t cha love it
Especially the Scottish variety
Tee hee hee tee hee
A CEILER GONOF RUST
No argument from me,mate. You saw her first,you’ve got first dibs.
I’ll just have another pint and see who’s next.
Wouldn’t want us falling out over it…
This Week looks like it’s gonnay give neganon some material as well. Check oot Portillo’s breeks for a start.
Even Curly wouldn’t wear troos like that.
RC
What in Renfrew is on fire?
We can smell it in Dalmuir, looked major wi a huge black mushroom cloud.
Cowiebhoy, I’m not sure of the exact connection but They still owe me money for a job in Holland, I wouldn’t trust that prick as far as I could kick him. Orion are a major recruiter in the O&G world, effectively a body shop.
Aye, what a weekend. Did I tell you I won the golf and the pool?
So This Week now follows on bbc1. 12 seconds in, patronised to feck….
Andrew Neil hosting. From Paisley he is. Swivel ya bass!
Mrs jamesgang now pi$$ing herself at me cos I’ve slipped back into full Weedgie mode.
HH jamesgang
Tommy Sheridan cementing every reason to vote no……another embarrassing skit…….
Aye right, I was at the pool :-)
Night night now
Hail hail
Lots of comments on the QT panel tonight. I thought that Joan Burnie and Ricky Ross came across as very informed about the debate. They definitely won the argument tonight. Yes she’s an agony aunt but all sorts of people will have a vote in September.
Freedom to invest in bairns not bombs says tommy. Oh fur fecks sake……
Hugh bonkle are you the real Hugh or just a dick?