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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Neganon, I knew were gonnay love this program. Ha ha.
Sheridan falls into the media trap and signs up for Trainspotting sketch. Cringeworthy!
HH jamesgang
Neganon2 sorry to be the bearer of bad news but the programme you have lambasting- rightly is Question Time on BBC1. The programme you think you are watching – Newsnight is just finishing on BBC2. Always happy to help a fellow Celt having a “Senior Moment” Hail Hail Hebcelt
DD
Theories from the watching crowd were either a tyre depot or a scrapyard. Its an industrial place anyway right on the river. It will be on fire all night.
ACGR
Is Diana Abbott on your list too!!!???!!
HH jamesgang
Off to my scratcher…..early start and big day in prospect.
My hunch?
All sorts of spooks, ghouls an’ rascals will be at it the nicht.
It’s the huns – no debate.
HH
Cowiebhoy,whit? You mean I didn’t win?
I’m stopping this dramming lark. Where the hell did I get the idea I could play golf or pool?
Time to take up tennis I think. Morrissey will like this post that cover all the sports he’s hot at.
What about portillo???
ACGR?
HH jamesgang
He Celt you are absolutely correct and I apologise for my senior moment. But jeezus question time was awful my friend…….
Pity I have to head for work shortly. Though hopefully not for too long.
The crew already on here are kinda reminiscent of the Thursday/Friday moonhowlers from,oh,many moons ago.
With any luck,PETEC and FFM will be on shortly. Now,how do we go about sending out a search party for KITALBA?
http://www.bbc.com/news/uk-scotland-glasgow-west-28258577
The fire on the Renfrew side of the river.
Jamesgang, naw. I only focus on post menopausal burds these days. Another ten years and wee Di will be right up there as my poster girl. Is she a tim?
Finally. Charlie Kennedy speaks some sense about thatcher’s legacy.
But I’m not a libdem mind!
HH jamesgang
Tommy is an old sparring partner of mine. But he is now a parody of all that is wrong. What a shame.
Seems it’s in Scotstoun near the bus garage according to that report.
I agree with Hugh Bonkle. Never liked Joan Burnie ( hated Catholic schools and what she that they stood for) but came across as a very articulate speaker with some interesting viewshad she been allowed to finish without being interrupted by the better together business man. Ricky was a slow burner and perhaps was initially in awe of Dimbleby but he got it together and came across well in the end. Worked with Hastings in the 80’s and he husnae changed … Nuff said
Yes we want a resoloution
We all want Campbell Ogilvie to go
So you want to change the constitution
Well you know yes the SFA has to go
And if your talking about destruction
You can count me IN
IN IN
…….. Or something like that
RWE, you had my hopes up there for a minute. I really hoped that was Billy Nowell’s “Stadium of Silence” prophecy coming to fruition:_((
RWE
Shoooooorly not a Magills bus depot nearby?
Oh,they do seem dreadfully unlucky,don’t they?
It’s a wonder they can get insurance with all the mishaps,thefts,etc,which befall the poor souls.
ACGR
She can’t be a Stickie. That’s for sure. Too progressive.
Susan Boyle there fog you too!! Bonus. Hot chick tastic!
Me? Nicola benedetti. Amazing young gal.
HH jamesgang
Neg..,
I blame me, I played their game, I just found out that the letter we’ve been working on for the last five months has not been sent, scunnered and will be minuting all future meetings, most likely publishing said minutes as the discretion agreement has failed IMO.
I am waiting a response from some “city” people/legals who have been asked what the correct process to apply the correct pressure for results and the contingencies if we are dismissed by the board. As I keep saying this is a long haul flight.
RWE, how could I be so thick. How could Ibrox burn to the ground with all that asbestos they have there.
Tommy Sheridan was fantastic tonight on This Week. A refreshing change from the Tories that pretend their not, and English telling us how much we need Westminster.
No more Tory rich spivs. Public health & education. I choose to reject fear. I choose a progressive Scotland. #YES
RWE
That report is wrong, I was watching the fire, it’s on the south bank of the river.
JAMESGANG
Nicola Benedetti’s dad made his money from oil.
He owned an industrial dry-cleaning business in Kilwinning and perfected a process of removing oil from overalls and being able to recycle it.
Wee Michael Caine moment there….
Evening Celts..away for read bac
HH
BMCUW
Did I not say earlier today that there was nothing you didn’t blinkin’ well know!!!
HH jamesgang
AN TEARMANN.
Howdy,bud.
Troontim has been trying to contact you. Can you check your mail,please?
Morrisey tommy wasn’t great. He was pathetic.
Canamalar I feel really disappointed for you and the others. I think celtic are now on the edge with the support. I look forward to Paul’s view of developments. We are about to have to fight for the soul of celtic again. Please don’t blame upypursellf you and others have done nothing but good my friend.
Looks like we need rebels again…..
Hope Andrew Neil thanked Tommy for swingin’ by.
Today I saw 2 (non private) reggie plates……
…… One had the immortal letters FEK.
The other? KTF!!!!
Love it!
HH jamesgang
Just needed an FTQ for a Fenian hat-trick!
Canamalar, are you saying you will send meting minutes to the resolutioners for future res12 meetings?
BMCUW
First Bus depot South St.
The Inverclyde Krays wouldnae be that mental as to burn out First Bus Glasgow. Would they? :)
NEGANON
Few happier than I to have a pop at the board,but if the letter hasn’t been sent,it’s hardly their fault.
Though I would have thought it would have been noticed by now,either way.
neil canamalar lennon hunskelper extrordinaire
23:57 on 10 July, 2014
I haven’t read back. What are you saying? The board have done nothing?
Charles Kennedy looks like he’s gagging for a dram and a smoke.
NegAnon2 @ 00:04
Isn’t it arrogant to make your opinion a statement of fact and mine to be wrong?