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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whitedoghunch
Cheers…
Can’t remember if it was Raymond Baxter or ??
Mozart – a man ahead of his time.
HH
MWD
Thanks!
We must get together for golf or beer or golf and beer.
Or just beer.
Hope you are well.
It’s virtually impossible to get through the traffic and diversions by Celtic Park or near Dalmarnock. You would think the Queen of England was coming.
bsr,
A good honest appraisal of the State of the Nation.
We are all Celtic supporters and we are all angry that what we have known all our lives has been exposed.
I think the difference between some of us is where to direct that anger.
Some choose to lay it firmly at the door of the SFA. I am in that camp.
Some choose to lay it at the door of Celtic Park, as the club being complicit.
I can understand that POV, but I feel that it must be qualified.
The fact of still competing in Scottish football makes us complicit, if we accept that the football authorities have facilitated the corruption.
Even turning up at games makes supporters complicit in condoning the situation, even though the motivation is to support our own team.
Crowd figures add a gloss to scam.
What Celtic as an individual club can achieve to change this, considering the environment we operate in, is another matter.
Every limb of the Establishment seems to be Hell bent in supporting the footballing status quo.
I often end posts with DC or BC, which, of course, refers to the Derry City and Belfast Celtic solutions to their respective situations at the time.
Which of these options are open to Celtic?
I would suggest that neither are, therefore, we just gave to carry on and make sure we are as prepared as we can be to keep them below us……and the best way of doing that us, the ba’ in the back o’ the bet!
Morrissey new album ‘World Peace Is None Of Your Business’, is 18 tracks of perfection for £15. One song is called Mountjoy about the hell-hole in the heart of Dublin and mentions Brendan Behan.
I told my mother this and she said my Great uncle Hughie, who I am named after taught her a song about an inmate there called Kevin Barry: http://www.youtube.com/watch?v=XQZ8_zuVGhc
SubliminalAdvertisingCSC
philbhoy,
My father once told me that in any belief system, it is the women who are strongest in carrying the torch.
They are the nurturers and less likely to get sidetracked by the silly stuff in life!!
jc2 @ 15:27
Yes.
@CelticFCTickets · 6h
Tickets will be sent to STH for the Murrayfield match in next couple of days.
Apologies for fat finger/ iPad vagaries in my previous posts.
thomthetim….
My mother’s story is a long one…..but a good one.
I will tell her story on her hundredth birthday, so a few years to go yet.
But she was an amazing lady.
She was laughin
delete “she was laughin”
Morrissey the 23rd
15:04 on 10 July, 2014
__________________
Resolution 12 is along the same lines as the Doctor or, Mr Reid, to be more specific, telling us about the – dossier. imho
It’s onr thing having a dossier, it’s another getting it acted upon, especially were the huns are concerned. imho
I don’t ‘forensically’ understand, resolution 12 but, the ‘gist’ that I take from it is…..
Celtic want the SFA ‘actioned’ for their, mismanagement / collusion of the Rangers situation. Maybe I’m wrong but, all I can do is guess. And, my guess is that the Celtic ‘bored’ have headed all of the ‘resolutioners’ off at the pass – so to speak.
From the outside, looking in…I would conclude that, the only way that this ‘bored’ can be brought onside is by ‘rebellion’.
The ‘bored’ know that, they only need what – 25/30k of SB’s to keep the thing ticking over and, the rest(30k) are a luxury. imho
West End of East End
__________________
No, don’t hand back yer SB but make the ‘bored’ work for yer money – that is all.
Maybe, in a years time….Rangers will be back and yes, that is what they are called, just ask the ‘bored’ – that you seem to have some difficulty in seeing through.
Good luck to you both – Hail Hail
Off our – errands to run, bye.
Off our = Off oot.
Efffff trying to be posh
it disny sit with my Celtic DNA. Bye.
Sadly, outwith Scotland, the perception of our game will improve if/when ‘Rangers’ appear in the top flight – this is a generally accepted view amongst neutrals and even a couple of prominent CSC guys outwith our goldfish bowl.
My own view was shaped by Celtic supporters who have gone before us, and that is we support our club like we have always done no matter the obstacles thrown in our direction, of which there have been many over the years.
Celtic do need to be particularly careful here though – no ‘Old Firm’ rubbish, joint sponsorship etc – we said we have a standalone policy, that should remain the case.
HH
thomthethim
The issue of the transferred licence granting was ‘the sting’ you also posted such, in 2012.
Charles Green’s faux outrage that it was for Division Four wasn’t even close to convincing and transparent. They were utterly delighted that that were no ‘padlocks’ on the gates like you get in every other liquidation.
FTT UTT LNS jelly and ice cream there was not a Northern Rock there was not a Woolworths, just Sevco 5088. Their naming convention was never in any doubt, the only thing that says they are the same club, is them saying so, everything else points to the contrary.
We now have a tribute act, still wish my old man and brother could have lived to witness it.
My remaining wish will be for a Celtic reaction the less pc, the less subtle, the better but a reaction none the less, and a marker put down for Celtic supporters past and present to relate to.
KevJungle – Cheers for the reply, glad you’re away oot as you’re still talking pish..:-)
Morrissey
Thanks
KevJungle certain things puzzle me about some of your usually tedious posts but what really mystifies me is your spelling of the word ‘bored’you are refering to the Celtic Board why not just spell it properly. Similarly your last post ‘rebellion’ how is that different from rebellion? Maybe I’m the dumb one here, if so please enlighten me. Hail Hail Hebcelt
The simple fact of the matter is … that mob died , we witnessed them die and witnessed them buried ….. lest we forget ……HH
My recollection is that the Juninho EBT was reported to HMRC and that tax was paid accordingly.
If my memory is correct then how much of a rebate are we now due from Hector?
I have to say that Graham Speirs’ article today is brave and accurate. He will undoubtedly attract even more vitriol from the permaragers.
Throughout this whole saga however, he has not been completely honest and has failed to ask any meaningful questions of the SFA, Ogilvie in particular. He has written “fluff” pieces on Doncaster and Regan the chief officials of the SPFL and the SFA, nether of whom have managed to secure a sponsor for their major competitions, to the detriment of all clubs in Scotland. What self respecting company, one that pays its taxes and wishes to portray itself in a good light, will associate itself with organisations that have actively participated in the greatest sporting scandal in Scottish history?
C’mon,Graham, grow a pair and write the whole story. You’ve burnt your bridges with the hordes. What have you to lose? You have a chance to regain some self respect and earn the gratitude of the rest of Scottish football.
Iki- i believe Brian Quinn flagged up the EBT issue with Juninho and quickly resolved it.I was told he said to Martin Bain this would be a problem in the future in the huns persisted using it.How much of a problem is now up for debate.
Does anyone know a Tim that misses them?
How many huns do you know who claim to know Tims who want them back?
Philboy
Your post speaks clearly about your father’s character.
There was generation of Celtic men like that.
This is a generation of Celtic men like that.
There will be a generation of Celtic men like that.
philbhoy
Great tribute to your dad,well done
HH
To hebcelt,
re ‘bored’
the poor soul thinks that it is funny.
iki @ 16:25
The RFC players ‘loans’ are still due to be paid back. The creditors will be delighted.
RWE
I know of prominent CSC guys in England and Ireland who are of the opinion that if/when Sevco appear it will be good for the league, their supporters clubs and a more attractive prospect for potential signings.
You have to take into account that these guys face questions regularly on the strength of our competition, often from guys who support clubs like Hartlepool etc!
No one is in any doubt they are the vilest bunch of football supporters on the planet.
That is why the standalone policy which we trumpeted in 2012 must be adhered to.
In any case, we are more likely to face a challenge from Aberdeen, Dundee Utd or resurgent Edinburgh clubs than we are from Sevco, who in all likeliood will be whipping boys for a long time.
HH
Off message : class is class
http://www.youtube.com/watch?v=JyP407UnUWw
bsr,
I agree that some form of de-emasculating, (or is it re- masculating, I don’t know, is that a word, yes it is now)(sorry, went all SDM there for a minute)gesture is required from Celtic.
What that effectively would be, I have no idea.
Until then, we will retain the anger and a lot of it will be directed at the club.
I also agree with the “no joint ventures” approach.
It can be argued that pre the ?Russian invasion of Chelsea, Liverpool and ManU were the poster boys of English football for the previous thirty years.
The enmity between both supports at times rivals our home grown variety.
Yet there was never any joint ventures or initiatives between the clubs.
Granted, they operate in different cities, but that should be of no consequence.
Ourselves alone, or whatever it is in Latin. I must ask Phil Mac G!
In Your Sonsie Face Murray!!!
RWE
it was the only home game I never went to on my season ticket when the hun came to Play us. If they appear back in the top flight and I am able again to have a book I would happily buy one that omitted the games against them.
traditionalist88
16:07 on
10 July, 2014
My fear is that if the new mob ever join us in the top league, it wont be long before we are in “joint initiatives” with them claiming “It’s the best deal we could get”.
A couple of AGM’s ago the board refused to rule out further joint sponsorship with the old rangers despite overwhelming support from the floor to end any partnership with them.
Get in bed with this lot and that will be the end for me.
Celtic say they have a stand alone policy, this is the time to prove it.
bhoywithseethrougheyes
Yep, prove the standalone policy – its not a tough one Celtic.
No more guilt by association.
HH
Phil
Excellent tribute to your dad – he comes across as a true hero and not just for his efforts during the war but for the way that for him his family always came first!
Funnily enough the recent passing of the great Alfredo Di Stefano meant that I heard a story of my own dad who died 20 years ago on the 1st of June at the age of 78
He served his time in the yard of Harland and Murphy before joining RR at Hillington and then became a teacher after the war.
Like your dad he loved our club and could talk of all our heroes from the 1920s onwards
To me he was always a real gent as he hardly ever swore in life yet alone the football
When we went to the Thatcher cup final he booed but that all!
However my brother told me a story about the night the Huns were skelped by Eintract at Ibrox
My brother was serving at a Lenten service and as they walked home afterwards along C’nauld Road from Cardowan to Millerston they came a roos a car that had evidently run out of petrol
Curious to know why they were out of the game early my dad asked about the score
6-2 when we left was the reply – “For Rangers?” Asked my dad
To be told in a broad Fife accent “Naw – for they Germans ken!”
Then the Huns asked where the nearest petrol station was
“Out that way – at Cardowan Road End ” replied my dad
This surprised my brother who knew that that garage was now shut since they had passed it!
He said nothing until they were out of earshot and then said to dad
“dad you know that garage is closed – the only one open will be the one at Hogganfield Loch”
“You know that and I know that but they don’t!” Was my dad’s reply !
He never had to swear nor shout and bawl about it but he knew who were the good guys and who were the baddies!
He would have loved the last few years – really loved them as would all our forefathers who had to put up with so much bigotry and discrimination
Anyone who thinks this is not a great tome to be a Celtic supporter needs to get a grip
Generations of better people than us would have given their eye teeth to see what we have see and will see in the future!
We should raise and glass to all of them – who in their own little ways made today possible for all of us!
HH
Philbhoy
Respect to you and happy birthday to your Dad.
Always stay to the final whistle – in football as in life – you never want to miss a goal!
HH jamesgang
“Always stay to the final whistle:
I would like as many of us as possible to make a New Season`s Resolution to NEVER leave a game early.
I so resolve.
JJ
morrissey the 23rd
16:43 on 10 July, 2014
iki @ 16:25
The RFC players ‘loans’ are still due to be paid back. The creditors will be delighted.
I know Captain Unbookable has been interviewed at least twice by Hector…..allegedly
croppybhoy
Amen to that.