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.
[calameo code=0003901719d82038831a9 lang=en page=126 hidelinks=1 width=100% height=500]
650 Comments- Pages:
- «
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- ...
- 17
- »
Afternoon all. What are the odds of Chick interviewing Ogilvie, with a view to that disgraced public servant being returned to the fold to preside over his favoured team’s resurrection.
Mind you, can you resurrect the undead???
Bada
That could be anyone. I assume you mean Backpass tho. He went a full SPL season once with no bookings. Remarkable for a Centre Midfielder.
My old man always said that Rangers always made their dirtest player captain cause he got away with twice as much as the rest of their players. Pretty much stacks up if you look at their history.
LB
http://www.onfieldsofgreen.com/the-club-that-debt-built/
CROPPYBHOY,
Amen to that.
Oh, and for those suggesting that we should wait to the final whistle, I simply can’t. I have the choice of either leaving early or not being there at all. I’m sure there are others like me.
thomthethim
I can think of one for starters in relation to the ‘old firm’ – non sequitur.
Celtic must come out even if we’ve to wait till it’s a polite welcome to the new club and it’s inaugural visit to Celtic Park featured in the match day programme.
If they behave in the same way as ex Rangers supporters, I’d ban them just like I always wanted them banned, until Scotland acknowledges, it’s dirty open secret.
happy ton philbhoy snr i’m sure he’ll be smiling down at the plight of the huns and their tribute act……..as well as the god wishes to him and his bhoy from all the good bhoys on here h.h.
The summation of the latest development regarding the knuckle draggers, is that I hope in the interim we are planning the installation of sturdier toilets. As, new club/old club, they are soon to be defiling Paradise with their unique brand of filth.
I’ll never watch them ever play the hoops again.
While I can feel a wee bit of sympathy for those in Ireland or England, who may be happy with the return of the undead, I personally hope and pray that Celtic make no moves to do anything with them. Let them rot. They have caused way too much harm to way too many people. Ghod forgive me.
bsr,
“I can think of one for starters in relation to the ‘old firm’ – non sequitur.”
****
I thought that was having no garden clippers.
I blame your school!
Good read.
Nothing we don’t all know and agree with I suspect. But a v comprehensive assessment if it all:
http://www.onfieldsofgreen.com/the-club-that-debt-built/
HH jamesgang
@Auldheid Jun 18
@GrahamSpiers @TomEnglishSport @tendermatebalm @STVGrant @PeterAdamSmith Why don’t you guys ask these questions? http://scotfans4change.wordpress.com/2014/03/04/what-did-ogilvie-know/ …
@Morrissey23rd Jul 7
@tedermeatballs @sharko67 @pmcn888 @esta_x Can you ask Campbell Ogilvie these questions or not? A simple yes or no? http://scotfans4change.wordpress.com/2014/03/04/what-did-ogilvie-know/ …
@Morrissey23rd Jul 7
@tedermeatballs @discobiscuitdan @bh62bh @Barcabhoy1 @Auldheid So you will ask him these questions? http://scotfans4change.wordpress.com/2014/03/04/what-did-ogilvie-know/ …
@Morrissey23rd Jul 7
@macbloscaidh @tedermeatballs @TheClumpany @AndyMcCrimmon @Auldheid Gr8!How soon can you get answers these questions? http://scotfans4change.wordpress.com/2014/03/04/what-did-ogilvie-know/ …
Many tweets like that and then…
@Morrissey23rd Jul 8
@tedermeatballs Why did you arrive at the Celtic AGM declaring “I’m only here for Resolution 12” then fail to ever report on it?
keith jackson @tedermeatballs Jul 8
@Morrissey23rd i didn’t. Steady on Mozza, you’re coming across a tad unhinged.
Morrisseythe23rd @Morrissey23rd Jul 8
@tedermeatballs I never claimed I am not. Good to know you can answer questions. Will you ask CO these questions?
https://continuingrandomthoughts.wordpress.com/2014/03/06/what-did-ogilvie-know/comment-page-6/
– He then ran away.
– Which CQNer had that interaction with Jackson at the AGM then told me outside after the AGM?
Livibhoy-got it in one mate.HH
Kevjungle 16.00
With reference to your guess that the Board have headed the resolutioners off at the pass.
The only way to satisfy shareholders and resolutioners is to get a response from the SFA that answers the question ” what took place from 30th June to 10 August 2011 to treat a payment that moved from not being overdue at 30th June to having Sheriff Officers calling to collect in August?
On the good advice that you never ask a question you already don’t know the answer to, the last ones being headed off at any pass are the resolutioners.
The answer is not to the resolutioners but to the Celtic support and shareholders in the support.
Its a brave man that tries to mislead them.
croppybhoy
Brilliant story!
My old man loved us to win against the huns. (He would never have called them anything but Rangers) and he knew the deck was usually stacked in their favour.
But he would have been sympathetic to those decent ran*ers fans whose club had died.
Tonight it will be a large “The Singleton” to toast a lovely man’s memory!
God bless.
SFA Out and 8 others retweeted you
20h: Anybody in the west end area just now and want to pop into Tennents just to ask Regan or Broadfoot any questions. Please do.
Retweeted by paul the tim and 18 others
Morrisseythe23rd @Morrissey23rd 19h
Anybody in the west end area just now and want to pop into Tennents just to ask Regan or Broadfoot any questions. Please do.
Retweeted by Avenging Angel and 7 others
Morrisseythe23rd @Morrissey23rd 19h
@Morrissey23rd You could ask Regan if he still plans to hide the wee tax case behind the big one. De Boer & Flo were paid by unlawful means.
Sir Custac Cant™ and 13 others retweeted you
19h: @Morrissey23rd Ask Regan if he and Campbell Ogilvie want to meet up with the Resolution 12 guys in Hotel Du Vin for a secret meeting? #SFA
BJMAC67 and 3 others retweeted you
19h: @Morrissey23rd Ask Regan if he and Campbell Ogilvie want to meet up with the Resolution 12 guys in Hotel Du Vin for a secret meeting? #SFA
@Morrissey23rd · 18h
@Morrissey23rd Mr Stuart Regan. It’s your round. Mine is a Guinness.
– Stuart has not been in touch to buy me that beer yet.
In the sunny back garden of course!
Auldheid
17:36 on 10 July, 2014
Its a brave man that tries to mislead them.
___________________________________
Well, with the utmost respect to, yerself and the other
resolutioners / Internet Bampots etc, a couple of
Rory Bremner jokes worked a treat at the – shareholders AGM
don’t ye think?
Hail Hail
Bye.
KevJungle – Murdo Macleod is my favorit CELTIC player ever.
17:47
Yes.
http://videocelts.com/2013/11/blogs/latest-news/lawwells-rory-bremner-gag-at-sevcos-expense-keeps-fans-laughing
https://m.facebook.com/story.php?story_fbid=257829194425192&id=172384296303016
A really interesting read on Trident from a local guy …..A bit surprised by the hugeness of the facility
Kevjungle
Not trying to be a smart ar8se or facetious here but can you tell me,
What’s the most robust thing or things you think the board could do?
Would you then support them if they did?
And what would ‘ideal’ look like to you? Ie playing in England or a more formalised wider euro league.
Hope you’re not presently aff oot cos I would like to know your thoughts.
HH jamesgang
I went over to Celtic Park today to get my grandson an ST, my year was made when I bumped to the legend that is Billy McNeil, spent 20mins chatting about subjects ranging from the state of Big mans knees to the lions trip to champions league final and the World Cup. What a fantastic man I was in total awe felt like a kid in a sweet shop it was an honour and a privilege.
Didn’t think the mrs would be home for tea.
Really wanted a kebab. (I’ve met only one other person who loves donners while sober!)
Mrs and daughter now will be home tea.
Busted. Starving. Kebabless. Distraught. :-(
HH jamesgang
traditionalist88
16:43 on 10 July, 2014
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
I really really you are spot on in your assessment but I have this horrible feeling that they will be in the SPL next year. Then it really will be sickening
Kevj..,
The resolution has the power of the “city” behind it.
There are very serious consequences for any board who do not protect the interests of their shareholders :o)
This is the context and why the board could not vote against it, make no mistake, as stated many times before, that is why the resolution needed to be brought before the only people who are/were answerable to the shareholders of Celtic Football Club.
billy bhoy 05
17:59 on 10 July, 2014
https://m.facebook.com/story.php?story_fbid=257829194425192&id=172384296303016
A really interesting read on Trident from a local guy …..A bit surprised by the hugeness of the facility
………………
I worked there in the early 70s. It is a huge site. We were putting new bunkers in for the missiles.
Season 2014/15 hasn’t started yet. In season 2014/15, Sevco will play in the SPFL Championship. The second tier.
Clearly they hope to gain promotion to the top tier, starting in season 2015/16. In other words, a whole year from now. To my mind that is far from certain, but it is obviously the earliest they can join the top tier.
Why is everyone today discussing the possible return of Sevco to the Premiership? Why are people demanding that Celtic do or say something about it? I mean, why now? Why today, as we approach a new season?
So the HMRC appeal failed. So what? Did anyone seriously expect otherwise? Were you all counting on HMRC winning the appeal and that resulting in some new sanction on Sevco that would somehow stop them in their tracks and derail their journey towards the Premiership? Surely you all cannot be that gullible.
It’s the only reason I can think of for the sudden resurrection of the Sevco obsession.
We all knew they were potentially a year/season away from promotion to the top flight, yet today all of a sudden the stench of fear permeates the blog yet again, with Celtic supporters queuing up to tell us all what Sevco are going to do to us next season.
Yesterday we even had posters claiming that people like me, who predict that Sevco will struggle for many years, are “deluded” and “living in cloud cuckoo land”.
I never thought I would see the day.
It stinks to high heaven.
The fearties are growing in number by the day.
Shameful.
Billybhoy05,
Wee flaw on rwe’s argument must be about the resurgent Edinburgh clubs shirly
Billy McNeill
Played 790 games – never substituted according to Wikipedia. Must be another record.
Martybhoy59 – thought you could have looked him straight in the knees to see how they were!
Tom McLaughlin
Ssshhhh. At least the Sevco obsession keeps the Indy bores at bay!!!
Billy Bhoy 05
“I really really you are spot on in your assessment but I have this horrible feeling that they will be in the SPL next year. Then it really will be sickening”
Genuine question , I promise.
Did you ever think , truthfully, that Rangers , Sevco , Thems , call them what you want would really just disappear altogether , never to resurface ?
Perhaps I misunderstand what disappoints you about all this.
I never thought for one minute they wouldn’t be around again.
They are however forever tainted by what has happened and despite the bravura and empty swagger we know it and they know it.
I’m almost laughed out at them but I would laugh again if they weren’t promoted this year , for whatever reason.
But , back in the SPL or whatever it is called?
It was always only a matter of time.
Tom..,
I really dont think anyone is feart of der hun, I think the fear is how our board will treat them and the heartbreak it will cause if the board simply roll over and welcome them as a long lost friend.
Has any posters or lurkers stayed in the Crinan hotel in Lochgoilhead, any advise would be most helpfull, CQN trip advisors
https://m.facebook.com/story.php?story_fbid=257837644424347&id=172384296303016
This guy is a legend.
Ian Hamilton QC
the long wait is over
18:23 on 10 July, 2014
I know you’re correct but somehow we didn’t want to believe it. Now it”s happening
Tom McLaughlin
18:11 on 10 July, 2014
No one, ever in the last 2/3 years, has posted anything alluding to any fear of les animaux.
No one.
But hey, why let the facts get in the way of a wee strop?
canamalar –
I understand and accept that, but why now? Why today?
It’ll be at least a year before they can join us in the top tier. I am just trying to understand what has brought all this up today.
archdeaconsbench –
Of course not, but it is absolutely what is coming across as far as I am concerned.