The enormity of the forthcoming SPL Commission report could easily be lost in the ocean of headlines which has engulfed this matter in recent years. I’ve noted below more information from the recent First Tier Tribunal report on Rangers tax case, in an attempt to clarify some of the key issues.
From The Evidence:
“The Appellants’ first witness was Mr Red, a senior member of the group’s tax function. He is a Chartered Tax Advisor and qualified as a tax inspector previously to joining the Appellants.”
“Mr Red insisted in his evidence that the Trust was not a means of “tax avoidance””.
“It was noted in an internal memo prepared by Mr Red dated 8 September 2005 to the Board of MIH that he had described the Trust as a form of “tax avoidance scheme””.
Dissenting opinion from Ms Poon:
The Nature of the Side-letters
“Another strand of evidence being tested was the nature and purpose of the side-letters. Asked about the secrecy surrounding the side-letters, referring to the fact that they were not lodged with the SFA, nor disclosed in the long period of HMRC’s enquiry, Mr Red’s reply was: ‘I still say there is nothing secret about them. We have nothing to hide in these side letters’.
“It is not accepted that there had been no deliberate concealment of the side-letters, in view of how the first side-letter only came to light through the seizure of Mr Berwick’s file nearly four years into the enquiry.
“It is not accepted that the nondisclosure of the side-letters arose from a ‘credible’ view that Mr Red considered the side-letters irrelevant to HMRC’s enquiry. As a former Inspector of Taxes, Mr Red knew, or should have known, that the side-letters were highly relevant to the enquiry.”
“The side-letters showed a form of contractual arrangement, and they proved linkage between the sums contributed into the sub-trusts at the appointed dates and their withdrawal as loans from the sub-trusts as contemporaneous transactions. The contractual aspect and the linkage between the amounts of contributions to the main Trust and the sums loaned had been repeatedly raised in the enquiry correspondence.
“A fair conclusion to be drawn from the circumstantial evidence on the one hand, and Mr Red’s oral evidence on the other, is that the side-letters had been actively concealed. The reason for the concealment might have been, in Mr Red’s view, the side-letters could be incriminating evidence against the impression of the trust operation that he had been trying to give.”
“While not denying the proposition put to him by the Respondents that ‘there’s an overarching contract with each of the footballers, consisting of the written contract and the side letters’, Mr Red maintained that ‘it’s our view that the side-letter or the letters of undertaking do not need to be registered or lodged with the SFA’ (Day 3/31-32).”
So, in evidence, Rangers witness Mr Red, did not deny the proposition that there was an overarching contract with footballers consisting of the declared contract and side-letters, but “it’s our view” that side-letters did not need to be lodged with the lodge SFA. Ms Poon suggests a fair conclusion is the side-letters were “actively concealed” as they could be “incriminating evidence”.
The SFA has issued disciplinary action against many clubs for erroneous registration but no club has ever faced a charge of actively concealing information necessary for proper registration.
The SFA president was a working director of Rangers when “our view” was established and was legally responsible for the club’s actions. As I noted yesterday, but, frankly, can still not comprehend, on publication of this report the president announced himself “somewhat vindicated” by its contents.
Majority opinion:
John McClelland became a board member of Rangers in 2000 (legally responsible for conduct and oversight) and according to Wikipedia held senior board level positions in the electronics industry. He was also a director of the SPL (legally responsible for conduct and oversight) between the company being formed 1997 and 2008.
The majority opinion, which favoured Rangers position in regards to income tax, noted the following about Mr Indigo, who was “a board member of Rangers since 2000. His previous career was in industry, latterly serving in senior executive roles.”
Mr Indigo “acknowledged that he was, however, aware of the overall content of arrangements made with players and did not consider these to be “secret”. He believed that the Trust had been used to pay appearance money and bonuses.”
According to rules established by SPL directors, including Mr McClelland, money paid in connection with football, including appearance money, has to be registered with the league. It also has to be registered with the SFA.
When the Lord Nimmo Smith Commission reports, we will discover if this is what passes as vindication in Scottish football, or if a senior officeholder of the SFA, and others, will be dismissed in disgrace and banned, sine die, from the game.
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Aberdeen have no pies at Pittodrie due to the meat scare.
StableDiet CSC
Ronaldo throws his dummy ootae ra pram!
*~*
Tallybhoy,
I thought Sevco won the reserve league last week, according to SSN.
Madrid on top in Camp Nou.
Celtic 2 – 1 up but Arabs pressing
Whatever you think of C Ronaldo, would you complain if Uncle Dermot had a rush of blood to the head and signed him for Celtic?
miki67
Man Ure are – allegedly – trying to lure that Portuguese bloke back.
Heard a fee of €63 million mentioned today!
Jesus wept!
HH!!
nae penalty
Stonewaller denied to Barca by Snr Mallenco!
I think a lot of Celtic supporters lost interest in the old and the new hunco once they were consigned to Purgatory. But it seems to me, as a layman, that the evidence is still screaming, ‘Guilty!’ as in ‘as sin’. The FTT lady said just that in so many words. But you’ve got to remember this is a sometimes odd little country. That’s why I wouldn’t be at all surprised if LNS said ‘Look lads. You’ve had a hard time. Is there any way we can make it up to you? How about all the kingdoms of this world and the glory thereof, for a start?’
For all you book readers out there I just finished a couple of good ones…..
“Nail in the bannister” by R. Stornaway
and
“Out of the window” by Eileen Dover
Is anybody else’s TV got the Camp Nou sloping top to bottom and left to right?
Or have I to stop drinking?
Good block on Messi
– by the ref
Snr. Mallenco in “correct decision” shocker!
“mon the wee genius!
jonny the tim
I would rather blame the man who stands behind the goal. Poor decision.
Free kick Mulgrew territory
Celtic Football Club @celticfc
82. Second change for Celtic – Denny Johnstone replaces Bahrudin Atajic.
Thought he’d scored there!
Commentator kids on he didn’t think it was in.
That ref is an ‘ego trip’ eejit….
Referee hasn’t improved
Zbyszek, I was referring to the free kick, I thought he called that one right, but got the Barca “penalty” wrong.
HH
What’s black and white and eats like a horse?
A Zebra.
soalstarteditcsc
I see China is now getting into this mis-labelling carry on, apparently a lot of burger joints are selling quarter Pandas!
I’ll get ma coat!
Mallenco spots foul off the ball at corner!
Frozen Meat Importers should face more hurdles
Gerry Armstrong
Jim Beglin
Stephen Craigan
Alan Green
*see a link?*
BSR
soup?
Or the high jump.
What kind of horses go out after dusk?
Nightmares!
There’s a sniper in the Camp Nou.
‘Celtic player sent off shocker!’
Celtic Football Club @celticfc
85. Stuart Findlay is sent off! That looked a harsh decision. Small went down holding his face but there didn’t look to be much contact.
Barca need to defend a wee bit better…?
Fritzsong, 20.48:
Sadly I concur…
Embdae think Sergio Ramos will see the game out?
Celtic Football Club @celticfc
Full time: Falkirk 0 Celtic 1 (Atajic 27) The young Hoops move 13 points clear at the top of the table.
HH!!
The mighty Stirling draw level
What is the point of these ‘extra’ officials? that’s all they are: ham actors picking up pimm’s money for prancing about.