The First Tier Tribunal not only delivered a verdict on Rangers tax case, they also nailed the issue facing an SPL Commission on the non-registration of player earnings. Certain HMRC assessments were upheld and some declined, as we expected. The findings:
Some payments were taxable and liable to NIC
Some payments were loans to players and “remain recoverable and represent debts on their estates”
Non-registration of side-letters [with the SFA and SPL]was incompatible with both authorities’ policing and disciplinary powers
The appeal “reduced substantially” the tax demand but upheld that “that advances in favour of certain players are taxable and liable to NIC”. So HMRC can look to recover much of the EBT outgoing from recipients, whereas the tax and NIC elements will perish with the liquidated company.
I didn’t expect the FTT to report on the non-registration of side letters but they were categorical on this:
“Side-letters, of course, had not been registered with the football authorities, the SFA and SPL. The spirit of their rules was that the whole contract terms should be registered. Suspiciously, no evidence was led as to who decided that the benefits in terms of the side-letters should not be registered. Non-registration of side-letters was incompatible with both authorities’ policing and disciplinary powers. For example any fines imposed on players would customarily reflect the disclosed wage. Non- disclosure would thwart the authorities’ powers.”
The report is anonymised and no indication is given as to which elements of the demand were upheld, which were denied, or the quantum of the demand.
Orders are now open for the very first CQN Annual, get it here!
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Pfayr
You confuse Charles Green with the SFA
HH
Breaking news from Moscow.
We will not see Vladimir Putin playing for Spartak in the second half. When Puting was ready on the line for a change, Villanova told him ;your majesty , if you go on the pitch we will let baby Messi play last ten minutes of the game.
Putin said: I’m sorry, last thing I want is annoy gods.
So can we expect an influx of sneaky wee orcs on the blog who think actually won something and they’re brave enough to come out now???
Paul67 et al
Have not read the ruling but I did note that the appellant was the ‘Murray Group and others’, the former now part owned by you and me, via equity for debt transfers, re MIH, the Bank of Scotland and HMRC. There is some value there which needs to be exploited by the HMRC. Fully upheld the ruling would have meant HMRC reclaiming unpaid taxes from a company partly owned by the public, hardly an ideal situation for HMRC or indeed for that rare species over Govan way, the taxpayer. HMRC needs to get ruthless with Murray, his group owes hundreds of millions despite equity swap, and ensure that not one penny owed is unpaid. Or, if it cannot be repaid, the Murray Group should be liquidated. As for the ‘others’, repay the “loans” or pay your taxes!
Ok guys away to the pub. Taking car and drinking OJ
See youse later after we have qualified ;-)
HH
TPOG
I sincerely hope one of them steps up with additional proof.
In response to other statements…I cannot see how HMRC can recover tax due on a ‘loan’ that is meant to be paid back to the EBT. In my opinion, the onlytax that might be legitimately recovered would be that tax on the ‘benefit’ of an interest free loan to the players.
The benefit being the amount the player would have paid in interest to borrow the sum of money from a regular lender. Does not amount to anything like Income tax owings.
ThiswillrunandrunCSC
Somebuddy Done Tole Me..it may hiv bin.. collie.. then again..it may hiv Bin
Lou..or..mebbe ,it wiz… Gregorio..
Yep.. It WIZ.. Gregorio..
Ah kin remember him sayin..
“A Win ..in the Euro League.. Means..
One Million Euros.. fur the.. well.. Winner.”
So..
That means..that So faur. Celtic hiv Accumulated..
Let’sf see.. Two Nothing and Two Wan.. Equals…
TWO MILLION EUROS,in the Celtic.. Sporran..
No Bad..
Noo. we wull stand tae Win.. Anither..
Wan Million fur the Cause.. when we Win .. Tonight..,
A Million here and a Million there.. soon ye ur talkin’
Nice Woik..if .. Ye kin Get it..
Thanks tae Neil and the Bhoys…
Kojo
Still, Laughin’
Looking forward to the next few months. BDO will be legally obliged to call in any money owed to Oldco to distribute to the creditors. Can’t wait for the swarm of former players rushing forward waving their side letters as proof they don’t have to pay. #dignityfc
You can just imagine wee Craigie Whyte sitting by the pool at his villa in Belize cursing Fat Sally
craigwhitesoptometrist says u have 21/20 vision, is that even possible?
I think HMRC have played an absolute blinder here.
>So HMRC can recout monies owed thru recipients of ebts.
Victory?
What about this being a test case?
How many lost billions will this judgement result in with regard to EPL clubs?
Sunburst
18:21 on 20 November, 2012
TPOG
I sincerely hope one of them steps up with additional proof.
In response to other statements…I cannot see how HMRC can recover tax due on a ‘loan’ that is meant to be paid back to the EBT. In my opinion, the onlytax that might be legitimately recovered would be that tax on the ‘benefit’ of an interest free loan to the players.
The benefit being the amount the player would have paid in interest to borrow the sum of money from a regular lender. Does not amount to anything like Income tax owings.
ThiswillrunandrunCSC
Sunburst: You are correct, I have had loans from my employers in the past and I have had to pay income tax on it as a benefit in kind. For those that recieved the loans in 2000 there will also be penalties and interest added.
why do clubs not stop paying players and just give them loans
Deniabhoy
Huns gloating about what
If they have any sense the FTT result will enrage them
Not much sense about tho
Didn’t Alex Rae say live on radio that the loans would never be repaid? Therefore they can’t really be loans….?
Establishment pulling together via the old handshake brigade.
So according to AJ because they were loans they didn’t need to be declared to authorities.
ahhh come in Mr Bond and meet Mr Red
DeniaBhoy
The gloating rights regardless of any decision at the FTT will always remain with us
Why?
Because RFC 1872 were liquidated and are no more
Celtic are now Scotland’s most successful club
So in effect old rangers got liquidated for nothing, if the FTT appeal outcome had been made public earlier, the CVA would have been approved and they would have gotten out of administration and still been alive and well in the SPL
Given that the MSM line all along is that the FTT result was meaningless in terms of Sevco’s position I wonder if they wil change their tune now,
rangers died for nothing…..fantastic news, cheered me up no end.
Robloblaw,
you forgot to mention international registration :o)
now as I see it
Anyone who never produced a side note/letter has been acquitted of tax evasion as the EBT is deemed to have been legit, fair enough. – as expected it was a loan,
that will likely be directors, operatives and agents who trusted the club and understood the concept.
They have had loans, everyone else who produced a side note/letter, had income and are still liable for tax and NI.
Now the hard bit for me is, who did the trust that issued the loans represtent. Was it the club or MIH, if its the club then BDO can recover the loans for the creditors.
If its MIH I’m lost :o) IMO its the big question.
If its the club and BDO go after them for the loans and they produce a side letter/note then BDO are bound to turn the letter/note over to HMRC to allow the recovery of tax and NI.
Regardless, its fun to watch their bewilderment :oD)))
COME ON YOU BHOYS IN GREEN
Don’t understand the glee tonight about the big tax case result. Yes oldco liquidated ,probably unecssarily ,which is cause for glee but in my eyes this is complete vindication for Murray.
Don’t quite understand how if these loans are deemed non contractual how the independent tribunal will vote against them.
Has RTC been wrong all along?
My god these Orcs will be gloating forever…… Well until the glorious hoops qualify for the last 16 tonight!
Do loans not require a contract and repayment term otherwise its not a loan but a handout, I wonder what documents the court has seen to deem them loans.
I doubt the FTT will have had an opportunity to consider the issue of side letters
EBT’S are not illegal…but they have to be operated properly
Celtic Football Club@celticfc
Celtic starting XI to face Benfica: Forster; Lustig, Ambrose, Wilson, Matthews; Brown, Wanyama, Ledley, Mulgrew; Hooper, Samara
izzy
18:24 on
20 November, 2012
craigwhitesoptometrist says u have 21/20 vision, is that even possible?
I think HMRC have played an absolute blinder here.
>So HMRC can recout monies owed thru recipients of ebts.
Victory?
What about this being a test case?
How many lost billions will this judgement result in with regard to EPL clubs?
FTT can’t be used as a precedent , maybe HMRC want to take it the whole road to the high court to secure s precedent,
Surely any loan repayments would be due to the scheme trustees rather than creditors or HMRC? There is no win here at all for HMRC so perhaps they will appeal.
The evidence does however point to the existence of side letters and payments via third parties (the trustees) which should also be admissible to the SPL tribunal and prove that players were not properly registered.
The huns have just dragged Scottish football through the gutter,they tried to cheat and almost got away with it but paid for it with their existence.
Whats not to like?
burghbhoy
hardly vindication for murray, he spent £800+ million of other people’s money on the most profitable team in britain when he bought them only to see them liquidated within 25 years
not a cv deal breaker if you ask me
I heard the news of the FTT decision reported on 5Live and nearly has an apoplexy. This is what this country is all about. Sickening.
FTT Result in 100 Words
Rangers (deceased) win as not liable to pay anything near full HMRC claims.
HMRC wins as Rangers (deceased) still liable to pay something, and a fraction of many millions is still millions.
Either party could appeal further. Neither of them will.
One Tribunal member was not convinced re emolument/loan argument but two were, or at least were slightly persuaded.
Positive result for ex-Rangers does not guarantee positive result for Mr Green’s Rangers at SPL inquiry. Different questions to be answered by each.
Press coverage will be superficial and will treat it as Ibrox win.
Rangers message boards will be full of demands to sue HMRC, SPL, SFA, CW, SDM, SMERSH and DVLA.
I will have a summary up on Scotzine later and a more detailed analysis, in 18 chapters here.
in a positive sense from sdm’s perspective
Celtic starting XI to face Benfica: Forster; Lustig, Ambrose, Wilson, Matthews; Brown, Wanyama, Ledley, Mulgrew; Hooper, Samaras
Subs: Zaluska, Kayal, McCourt, Watt, Lassad, Commons, Miku
So, metaphorically, they don’t have a terminal illness, but they are dead anyway.
Good news and bad news – or is it the other way around?
Awe_Naw_No_Annoni_Oan_Anaw_Noo
18:09
HMRC lost and every Scot should be shocked and saddened that their judiciary system is so corrupt. Not one of these 10 year old loans has been paid or was intended to be paid.
>Correction good sir.
Not one penny has been paid!!!
Absolutely Ten Men, R*ngers are dead and nothing is going to change there. NewCo gains absolutely nothing. Whether the payments were loans or wages should not effect Nimmo’s Tribunal. There issue is the side letters. This money was never going to be paid anyway, so nothing at all has changed. Accept that the Huns now no if Craigy had played it straight they might have survived, that knowledge will only hurt them all the more,
Don’t get this Hun gloating craic
RFC are no more ….
PF
Paul has said above he was surprised the FTT mentioned the dual contracts which they did,categorically.
Lenny assaulted during live match on TV – not proven.
Celtic (and the rest of Scottish fitba) shafted for 10 years and more – not proven.
Luckily, the ONLY THING THAT MATTERS, there is a match tonight, a match where we are at the top table – on our own merit.
Win, lose, or draw we can look anybody and everybody in the eye.
C’Mon the Celts!!!