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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The problem with the Celtic seems to be – aint enough dirty-dirty bassas at the board room.
You know the ones who’ll wait till the huns are on the floor, then pull the trigger.
If they come back into the same league as us, they wont stop till they get payback.
My skin is crawling just thinking about it.
This is getting creepy now.
Good bye CQN.
I had a season ticket ,when Fergus took over the club right up to last season, likethousands of other supporters I had enough.no atmosphere .but I have renewed for this season, and with sevco likely to be back next season, watch all them thousands renewing.
Who is the new guy?
Philbhoy- Craig Whyte.
he’s a Motherwell born billionaire with wealth ‘off the radar’.
As its quiet this morining I think we shud all take a few minute and listen to one of the most beautiful pieces of music ever written
http://www.youtube.com/watch?v=q4XxaWXsO78
B-)
Quiet eh? This should change that.
Club Statement:
“RANGERS Football Club Limited (the “Club”) notes the findings of Lord Doherty in the HMRC case against Rangers Football Club plc (Oldco) and shares the views of many fans that so much of what later ensued at our Club following the start of that investigation was avoidable.
“We are pleased to see the end of this sorry chapter in the history of Rangers FC, yet our greatest sympathy is with those who felt the pain of the last four years the most – our supporters.
“In spite of almost unrelenting attacks and setbacks they have never flinched from supporting their football club with all their energy and resolve.
“It is a matter for the authorities to explain their actions during this entire period that has seen the good name of Rangers severely damaged.
“Our focus is on rebuilding the football club and getting Rangers back to where we belong. That, in itself, will help right some of the wrongs our Club and supporters have suffered over the last four years.”
Morning Fholks.
Apologies. Looks like my twitter has been hacked . Please dont open any tweets that ive sent. I’m checking my email just now. In fact – just send me back to Coventry until i get the all clear.
Sanna
Auldheid @10.21
Surprised it’s taken them 48 hours to come up with this. Their version will become the official version.
Jimbo67 praying to Oscar Knox and for Thomas Worth
Auldheid
They don’t seem to be overly worried about money.
Still signing players and I believe they have added to the backroom staff.
Pre season tours to America even if it’s to play diddy teams with small crowds for no profit.
No line of credit at the bank.
Season ticket sale down, alledgedly.
Unless the new shirt sponsor gave them millions up front.
It doesn’t make sense to me.
Mind you, not a lot does these days.
“…….and shares the views of many fans that so much of what later ensued at our Club following the start of that investigation was avoidable.”
and what would that be that was avoidable?
Certainly not liquidation since that was due to unpaid PAYE and VAT.. a considerably less sophisticated form of tax cheating.
PHILBHOY
32 RED paid the huns squillions in advance.
In chips.
Sally scoffed the lot!
HereawweekCSC
CADIZZY
The unfortunate reality of uncontested debt has been consigned to the dustbins of our paranoid imagination.
It didnae happen,the huns were crucified despite being guilty of nothing at all.
Auldheid @ 1021.
Aaaaaaaargh!!!!
did you have to post that??
I have deliberately kept quiet and tried to stay away from all things them, esp in the last couple days, but reading that has my blood boiling…..again!
The whole “innocent victim” story has been and now will be pedalled for evcermore by those cheating bassas. Right alongside, the “same club, continued history” crap.
Unfortunately their compliant friends in the LL/MSM have been instrumental in perpetuating this lie also.
We know the truth, but unfortunately I fear the “truth” has been and will be airbrushed from history and we will just be seen as bitter wee Celtic supporters who’s hatred of ” the rangers” overrides all else.
HAIL! HAIL!
Token
Cadizzy- yes, there is a fair amount of very selective re-writin’ of the ole histoey goin’ on down in Govan.
I expect the same Chelsea fans who rioted in Manchester were also filing in the ole tax returns.
Neganon @ 0848,
Apparently the board are the big boys.
You can’t reason with such a love of authority.
His post also says a lot about his lack of character and intelligence. That post this morning was like reading the words of a spoiled wee brat defending his rich daddy.
Canamalar can fit more intelligence into a five word sentence than that muppet can in 50000 words.
Jobo
You around? Wee birdie tells me golf is a more dangerous sport than I’d thought! Heard you lost a milk tooth or summit?!?
HH jamesgang
Re the Big Tax Case which Rangers have won and which the current incarnation believes was avoidable.
I may be wrong here but did Rangers not offer a substantial sum to HMRC to make the case, effectively, go away? If my memory is correct does that not mean that Rangers and Murray were pretty sure they’d lose the case if it ended up going to court?
All avoidable of course. If they’d not sought a means to avoid their employees paying tax and in the process remain several steps ahead of Celtic might would of course have made it all avoidable.
Jimbo67 praying to Oscar Knox and for Thomas Worth
Goal Marchisio.
Nice strike.
It’ll be interesting to see how Celtic line up tonight given that this is our last training match before the biggie on Tuesday.
Will Ronny continue giving the youths a chance or will he start with as close to his favoured, starting11 as possible?
dontbrattbakkinanger
10:34 on 11 July, 2014
Wherefor is your sympathy for the poor / maligned / downtrodden ‘squatters of ipox’ ……
BMCUWP
They’ll not thank you for saying they were crucified….probably accuse you of being sectarian.
DBBIA
filling in tax returns is a noble vocation….so it would not have been Chelsea fans
Personally, I blame the scapegoats. Everything else is usually their fault so this probably is as well.
JIMBO67
Murray offered £10m but with no admission of guilt.
When refused,he dinged the other undisputed WEE TAX CASE too.
They knew they were guilty,and they are. But the findings of the FTT(T) make life difficult for HMRC.
I think they will need to petition for it to be set aside in its entirety and retried.
Another five years,by that route.
The Token Tim,
I agree. I expect that a few generations from now, it will be read in shock by some young Celtic supporters along with the extensive list of other hun shunannigans which is now running into many pages. There will be disbelief, rumour and inaccuracy. This is another century old well developped hun skill – muddying the waters to hide the truth.
Morning all. Glorious down here once again. Has the earth’s orbit changed? Hope this continues until the Commonwealth Games are over.
Hope we show ole Dukla Prague that the latest Celtic team can put on a show.
CADIZZY
Oh I know. It’s a word I’ve sneaked in to a few conversations with them.
Got away with it on all but one occasion.
Still,crucifying thems not good enough. Silver bullet we need!
When is the bhun penny going to drop that they would have survived if sally hadn’t fecked them up in Europe (after being corruptly gifted 3 league titles by their ‘friends’) …… And he’s still feckin them up …… Hahahahahahaha .!!!!
More frae the Wolftones.
BMCUWP
No admission of guilt? Good one.
A despicable bunch
Jimbo67 praying to Oscar Knox and for Thomas Worth
jimbo67
10:42 on 11 July, 2014
Re the Big Tax Case which Rangers have won and which the current incarnation believes was avoidable.
I may be wrong here but did Rangers not offer a substantial sum to HMRC to make the case, effectively, go away? If my memory is correct does that not mean that Rangers and Murray were pretty sure they’d lose the case if it ended up going to court?
All avoidable of course. If they’d not sought a means to avoid their employees paying tax and in the process remain several steps ahead of Celtic might would of course have made it all avoidable.
Jimbo67 praying to Oscar Knox and for Thomas Worth
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With a mind like yours, I dinnae think yer wrang.
2&2 is 5, repeat after me.
PFayr
afternoon tea for me and you on a Saturday at 3pm or a Sat\Sun at 12\12:30\1\3 or a Fri @ 7 or Mon @ 7
MWD says AYE Celtic says OldFirm Rule and bring on the Rangers
JIMBO67
Offer to settle without prejudice.
Personally I’m just gonna let the pros from Dover sort it all out. We know they did it,so do they.
The bluster is more of a what-ye-gonna-dae-about-it smirk than outrage at their mistreatment.
Sure,they’re laughing at us cos they ‘got away wi it’
They didn’t. They were liquidated. Lost their better players. They are spending years in the wilderness-not long enough,I grant you. Their ability to attract players is gone.
All they got away with was paying their bills. Even the Tories don’t kill people who can’t pay their bills.
They humiliate them by forcing them to live on scraps. And telling them they’re lucky to get any.
Afternoon Timland from a very hot hun free mountain valley.
Auldheid…et all
You say that Res 12 is not top of the boards priority list.
And I agree it sure seems that way, but, and the but again…..
IT BLOODY WELL SHOULD BE.
Millions, not thousands, but MILLIONS have been stolen, defrauded from our club, by a combination and collusion with the sfa and the hun.
That mi amigo should see Res 12 at the top of any list IMO.
They are doing their shareholders a great disservice if they think that having millions wiped off the share account is no a big deal.
In any other business, they would be shouting from the rooftops about this, yet in scotland, we sit at the back of the bus as usual.
They are a joke, they are IMO worse that the establishment, they do what they do cos they can’t help it, we on the other hand should be fighting them at every turn.
But no, appeasement seems to be the mantra emanating from our boardroom, don’t rock the boat, let’s no upset the hun.
Where is the dossier Dr John talked of, why are we still sitting at the back of the bus ? did he not say,
and I Quote……….. { THOSE DAYS ARE GONE }
Fodder, tis all we are, give them your hard earned and they are happy, not another thin dime from me till they grow a pair, and I am not just talking about Res 12.
They still have done feck all re the referees, see if they even attempted to fix that problem, and it could be sorted so feckin easily, it would go some way to getting some of the support onside, the on going problems with the GB is another thing that is alienating many of the support.
The bigot pound is what it’s all about.
HH
at 10.55
“To Informacje jest warto uwaga wszystkich . Jak moge dowiedziec sie wiecej ?”
Maks sense to Mo maybe but I am baffled…….what is this all about?
Looking at their forums after the BBC item last night, two things have emerged.
Firstly they accuse Angela of bottling it in not mentioning Sevco and they seem to be very pleased that she called them Rangers. No understanding at all that Angela was talking about Rangers, the club that died and that the tax case had nothing to do with Sevco, the tribute act that followed.
Of more interest is their eventual rebuttal to what Angela said – they accept that the clown that they put up as their spokesman was hopeless but they have a collective view in retrospect that none of the misfortune that followed would have happened had it not been for the big tax case. The wee tax case would have been paid, all creditors would have got their money, Craig Whyte would never have bought the club etc etc etc
However while they are making progress they of course get it wrong. They blame HMRC for the big tax case. No mention of Murray entering into such a scheme that it would inevitably attract HMRC interest. No mention of the morality in pursuing such a policy – nothing like that.
Two things brought them to their knees. The first was Murray’s recklessness in pursuing such a high risk tax strategy regardless of the consequences. The second was their own WATP mentality (led by Walter Smith) that demanded from Murray decades of spending beyond their means regardless of the consequences.
The bank had previously swallowed what was it £50M of Rangers debt into Murray’s business empire – an empire now on its knees and will multi-million pound bank write offs showing up every time they lodge accounts. Murray had around £900M worth of debt.
Rangers never had the money and Murray certainly never had the money – it was all build on Murray spending other people’s money – including the taxpayers – and HMRC had every right to challenge what was going on.
Rangers died on their knees and the dead don’t come back. They are gone.
Well done to Angela, she is now taking serious abuse from the hordes – they do hate the messenger.
Moonbeams WD. Wee Oscar’s our Bhoy and Kano’s our mhan.
11:00 on 11 July, 2014
PFayr
afternoon tea for me and you on a Saturday at 3pm or a Sat\Sun at 12\12:30\1\3 or a Fri @ 7 or Mon @ 7
MWD says AYE Celtic says OldFirm Rule and bring on the Rangers
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I’m loving yer Rudi Vata. I didn’t realise ye were such a Rocket. Mair power to your Agenda. :)))
BTW, what is your actual Agenda because I am stumped.
A few years a go when Rangers began to hit the skids and the general opinion was that they were finished, quite a few on here (me included) said that they would never be allowed to die.
And now, whether you like it or not, sure enough there still is a form of Rangers and they will soon be entering the top division.
Many say that they will be financially hamstrung and in our shadow for years but just watch how they are assisted back to their ‘rightful position’.
You just know it’s going to happen.
On 11th July 1405 Admiral Zheng left Nanking in CHina to explore the globe in the first ‘treasure voyage’.
He would have left earlier but there was a mix-up with his paperwork.