Pay As You earn, or PAYE, is the mechanism through which most people pay tax on their income in the UK. It is deducted from source by employers, who forward collected money to HM Revenue & Customs (HMRC).
Not everyone is paid this way. In the decade prior to their liquidation, Rangers paid 53 players over £33m through Employee Benefit Trusts (EBTs). They paid owner, Sir David Murray, and manager, Alex McLeish through trusts, and also paid then-Blackburn Rovers manager, Graeme Souness, and then-Everton manager, Walter Smith, through EBTs.
Former players still involved in the game, or in the media, received pay through EBTs, including Billy Dodds, Steven Thompson, Neil McCann, Kris Boyd, Alex Rae and Barry Ferguson, the latter pocketing a clear £2.5m.
HMRC have instructed recipients to contact them in order to make plans to pay tax on this income. The money received is regarded by HMRC as a net figure, tax and National Insurance contributions will be added onto this, almost certainly always at the top rate. Then penalties and interest will be added. Players like Peter Lovenkrands will have to find money to top up the £902k he received.
Players received a letter from Rangers agreeing to underwrite any tax liability that resulted in them agreeing to take a portion of their remuneration in this way. Unfortunately, that agreement perished when Rangers went into liquidation.
No one likes paying taxes, but it funds healthcare, social services, housing, roads, police and even the monarchy and armed forces. What happened was a disgrace.
The club paid the ultimate price, with supporters going through incessant humiliations. The directors of Rangers at the time, including David Murray, most recent past SFA president and another EBT recipient, Campbell Ogilvie, and Dave King, men who were paid to look after the interests of the club, its staff, supporters and creditors, were never asked to account for bringing the game into disrepute by the SFA.
The chief puppeteer should be sine died from our game.
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fieldofdrams on 28th August 2018 12:18 pm
I hear that since wee barry signed over all his worldly goods to his wife and pleaded bankruptcy he has been forced to crawl about at home in his gimp outfit with an orange stuffed in his mouth…
FIELDOFDRAMS on 28TH AUGUST 2018 12:18 PM
There was a LOT more than that transferred. Buisinesses , property etc etc.
& not all more than 5 years ago.
Interesting times for FA’s who will make some money from it.
Dubaibhoy-Ur they still deid? on 28th August 2018 1:11 pm
fieldofdrams on 28th August 2018 12:18 pm
I hear that since wee barry signed over all his worldly goods to his wife and pleaded bankruptcy he has been forced to crawl about at home in his gimp outfit with an orange stuffed in his mouth…
__
Hahaha and then he will go back to his job criticising the money men at Celtic (along with bankrupt Chris Sutton)
Bada Bing
A loathsome character and a dreadful football manager. Serial failure. Nobody else would touch him with a bargepole. Egypt for goodness sake!
Now he is warning the players not in the squad “they have to be absolutely 100% wanting to play and ready to play for Scotland.” Aye – that’s the guy that took a jolly to South Africa for the World Cup draw and went straight to Birmingham when he got back!
The hands cant hit what the eyes cant see on 28th August 2018 1:09 pm
You are right to a degree. There is a difference between the objectives though.
Rangers needed a major overhaul. They came remarkably close to finishing 4th last season. Celtic have just been supplementing a settled squad over the last couple seasons. The most meaningful transfers being Edouard and N’Cham for fees they couldn’t afford.
Otherwise they are signing talent to cover what we have.
bournesouprecipe on 28th August 2018 12:54 pm
Be great if even one of them sued the new club?
——–
You would think that if any of the players were struggling to pay, the “same club” would offer to pay it for them. You know, being that they were instrumental in winning some of the 54 titles they keep boasting about.
Turkish giants Fenerbahce have reached an agreement in principle to sign Douglas Luiz on loan from Manchester City. [@ajansspor]
GLASSTWO
All enquiries referred to ‘the Liquidator’
DAVID17
Seems our master negotiator and SSM canny even get a loan deal over the line. Makes one wonder how much he wants a successful and attractive Celtic side on the pitch.
He’s got form for it,we all know that.
I am sure Barry Ferguson’s wife isn’t the first Celtic supporter to benefit from Rangers EBT use? After all we continue to trawl in trophies. If Rangers had not used EBTs I am sure they would have continued and prevailed in more than 1 league race over these last 8 years.
I am intrigued if any footballers looked at what Rangers had to offer interns of their EBTs and thought I don’t fancy that? Unlikely. It would be interesting if John Hartson would share what his package was that was offered prior to him failing the medical at Ibrox. Wonder what Johns thoughts are?
We may well laugh at Rangers but they were given assistance to continue only by the football authorities with no protest from our club.
Our Peter Lawwell said himself that we didn’t need a strong Rangers but we did miss around £10m per year with them not in the league.
We all know that the EBT scandal was an absolute outrage but the rest of the World has moved on. There is no willing by our club to speak out about it being cheated.
Now we return to the panto with Rangers spending beyond their means and our club shovelling cash into already full bank accounts.
BADA BING,
So sad to say,but you are bang on ,I think with the statement “We have no balls for the fight”Since the result of TBTC,we had an open goal.Even Morelos would have got it over the line.When you look at what the Res 12 guys managed,and compare that to our clubs handling of the matter,disgrace is too soft a word.I have never had faith in any Celtic Board to do the right thing,but this mob,I have no words for on this matter.They will be known for the future generations of Celtic fans to come,as cowards.
@ TIMALOY29 on 28TH AUGUST 2018 1:31 PM
Yep, I don’t contend that both teams have an equal amount of work to do. However, from our perspective, we should be trying to keep the gap as wide as possible, not resting on our laurels. We clearly have not done this.
Last year Sevco went out in round 1 of the EL qualifying and we qualified for the CL. This year both teams are in the final qualifying round of the EL; if that is not an indication of how the gap has closed significantly I don’t know what is.
I just hope, although I’m becoming resigned to the eventuality, that it is not crisis that elicits a change in our approach to transfers and pushing the team on.
The Hands
Difficult task you’ve given yourself keeping track of Sevco’s / Level 5’s loanees transfers
Umar Sadiq compared with Daniel Arzani?
Sadiq is 21 years old, a non striking striker and has been on loan to Breda, Bologna, Torino and now Sevco
much of a muchness? with Daniel Arzani who is 19 winger? and was signed by Manchester City.
Sevco signed McGregor as back up.
How come he’s played every game for Sevco – or are you just twisting the fact that Scott Bain was signed as our back up?
Ryan Kent is also 21 and has been on loan with Coventry Barnsley Freiburg Bristol City and now Sevco
Liverpool have hawked Eljaria ( also 21 ) around the leagues for two years, last seen on loan at Sunderland and has scored (1) senior goal
Comparing Arfield with Lewis Morgan is just too silly, even for your skewed logic.
Good that you acknowledged Celtic’s main target cost £7-9M and was therefore clearly not from the Sevco market.
Apples n Pears CSC
Eighty hours short of the end of the transfer window,glaring problems in defence screaming out at us-as they have been for a considerable time-and the lead article squirrels on about the huns cheating the taxman?
Paul,where have you been for the last five years when the Res 12 fellas were desperately begging PL to back them and ask similar questions to the one you have today?
Were you in PL’s face demanding answers,or in his back pocket,keeping schtuum?
BMCUW,
Dont know about that so much,maybe the guy chose Turkey(Its lovely here),or maybe City thought,being a Brazilian,it was better for him,or
it could just as easily been media bullshit.
Anyway,the vast majority on here dont want any more,steenking loanees,so they will be happy.
They will,wont they?
Jack Aitchison to Dumbarton on loan
Good article, Paul. Correction: it’s ‘sine’ not ‘sin’. Sine die is Latin for ‘without days’=forever.
As you say tax fraud means poorer public services all the way from our swing parks through to the neuro-surgeons’ operating tables.
I’m not at all optimistic about HMRC’s capacity to recover the money that fraudsters owe us. They have been quite remarkably unsuccessful to date in dealing with criminals (foreign and indigenous), private corporations, Google, Amazon and facebook. Our government
has a ‘relaxed’ attitude to corporate fraud.
This is why the UK is a world leader in tax avoidance/evasion. It also helps explain what JK Galbraith called private affluence and public squalour.
The hands can’t hit-
Rangers could finish up on Sunday having won only 1 of their first 4 games and be out of the Europa.
They play with a style that means they have a big gap between midfield and centre back. Their 2 centre backs are slow on the turn and the likes of Jack and Halliday are still playing.
Jack is a liability, slow on the turn and gives the ball away.
They will sit in and try to press us hard leaving gaps if we can shuttle it out of defence. Their main attacking tactic will be long ball up to Lafferty or Morelos to back in foul and fly at our defenders.
The hands cant hit what the eyes cant see on 28th August 2018 1:48 pm
Yep, I don’t contend that both teams have an equal amount of work to do. However, from our perspective, we should be trying to keep the gap as wide as possible, not resting on our laurels. We clearly have not done this.
Last year Sevco went out in round 1 of the EL qualifying and we qualified for the CL. This year both teams are in the final qualifying round of the EL; if that is not an indication of how the gap has closed significantly I don’t know what is.
I just hope, although I’m becoming resigned to the eventuality, that it is not crisis that elicits a change in our approach to transfers and pushing the team on.
___
First of all, it’s a bit useless to compare this season to last season so early. Theoretically, Celtic could win the Europa League and Treble and Rangers could finish 3rd and go out of Europe in the next round.
Secondly, there isn’t too much we can do about the gap closing. We will play them 4 times in the league and we cannot control how well they play in the other 34 games or in Europe.
We have to be the best Celtic we can be and that’s all we can do. This summer hasn’t been ideal due to the mishandling of McGinn & Boyata.
Outside of that I think we had enough to reach our objectives.
Still very much in the dark here on signings.Will Boyata stay?If he does not,we have serious problems for Sunday.As I said last week,our problem area,up against theyre strongest area.Balls into the box.We will have to face more air assaults than Dresden.We are leaving it too late,I think to get a CH in,who will play,so for the first timel in two seasons,,I have a worry.
Maybe its just wanting to gub them so bad this time.
Ssssshhhhhh!!! Mullet
Tell them nothing.They lurk!!
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS on 28TH AUGUST 2018 1:53 PM
Neither, I’ll guess. I’ll also guess that Paul67 knows far more about what’s really going on than you and me but isn’t in a position to comment on it, that’s really the prerogative of the original 3, who do just that, in their own very unique ways!
BSR @ 1:49 PM
Umar Sadiq compared with Daniel Arzani?
Sadiq is 21 years old, a non striking striker and has been on loan to Breda, Bologna, Torino and now Sevco
much of a muchness? with Daniel Arzani who is 19 winger? and was signed by Manchester City.
They both played for their respective reserves yesterday…:((( cough! cough!
Hail Hail
I hope Sevco get to the EL, regular pumpings, wafer thin squad, and The Lying King will pocket any money made.
Re Sunday’s game;
The ploy of red carding Jozo to tip the balance in the last game may have backfired on them but it won’t stop them trying it again.
We need to be smart.
Timaloy29
Appreciate I will be ridiculed for this, but of the Huns signings I would take Goldson. I think his aberration on the weekend is just that, and I suspect he will come good. He was 3rd choice at Brighton behind 2 very good centre backs, and Brighton then bought a Nigeria World Cup defender, so Goldson moved on. I was at their game vs Man Utd last weekend and spoke to a few fans about him – they all really liked him. ‘Cult hero’ ‘Fans favourite’ etc. He is big, strong, but also very capable with the ball. Questions around his pace but I suspect for the SPL he would be fine. With good coaching, I think we would have a player there.
Obviously I dislike McGregor as an individual, but he is a miles better keeper than Bain, and I would be very happy if we had him as backup. He is useless as a distributor but Craigy is not much better. The rest of his game is miles ahead of Bain’s.
What did we really expect – that we’d carry on smashing them by four and five and they’d carry on scraping third?
Have we signed anybody yet?
Árd Macha
@ BOURNESOUPRECIPE on 28TH AUGUST 2018 1:49 PM
Is it really Apple and Pears?
I think it’s fair to compare Sevco’s loans from Roma and Liverpool to ours from Man City. Both relate to youth players that are unproved. I think it’s looking through green-tinted glasses to state otherwise.
Arfield has played 40 games in the PL in the last couple of years. Even if not compared to Morgan, could you say that Hayes is a better player or of an equivalent standard?
I think I’m being fairly objective. Would you prefer I wasn’t?
I did recognise that Edouard is out of their league; we should be making more signings of his ilk as opposed to players that, on the face of it, could be singed by either Sevco or ourselves.
Celtic 3-0 Shakhter Karagandy (2013)
https://www.youtube.com/watch?v=Bgz9e3hLQx0
5 year ago today
A lot seem to be more concerned about E B T Sevco on here, rather than our own club, dragging their heels,on recruiting a Right Back,and a Centre Half,so to hell what the Huns are any other clubs are doing, keep the pressure on Desmond and Lawell,to think of the fans,and not profit,and I still say O Donnell at Killie is a decent Right Back.
Timbhoy2 on 28th August 2018 2:28 pm
O’Donnell would be an improvement on Lustig and Gamboa
Hill 16
Indeed the irony of tax-payer funded BBC Sprtsound paying a fee/salary to players guilty of tax avoidance in order for them to settle demands for back-taxes is laughable.
As I wrote the other day, the sports department of BBC Scotland must be one of the most unaccountable publicly funded organisations in the country.
MULLET AND CO 2 on 28TH AUGUST 2018 1:59 PM
Listen, they are not suddenly world beaters, but are we unable to admit the fact that they have improved?
I don’t see the benefit to us in not recognising that a greater challenge will be forthcoming from Govan this year.
PMacG saying that Sevco enquired about Nick Powell and were quoted £6m and John Terry’s agent has contacted Celtic
I think we will sign a centre half before Friday’s deadline but he wont be new
HH
gsu
TT,
Respect.
I dinnae ken if you have read this before.
A Quaker nonetheless really does look @ the bigger picture.
I hope we get a big crowd on Thursday. It is Celtic after all.
Walk a million miles for one of your goals CELTIC.
@ TIMALOY29 on 28TH AUGUST 2018 2:08 PM
“First of all, it’s a bit useless to compare this season to last season so early. Theoretically, Celtic could win the Europa League and Treble and Rangers could finish 3rd and go out of Europe in the next round.”
The difference is that what I stated was not prefaced with the word “theoretically”; it’s already happened. Celtic and Sevco are now at the same qualifying stage for Europe whereas last year we qualified for the CL and Sevco were knocked out in round 1 of the EL qualification.
“Secondly, there isn’t too much we can do about the gap closing. We will play them 4 times in the league and we cannot control how well they play in the other 34 games or in Europe.”
Sevco have invested in the team. On the face of it they look better this year. Had we invested in our team it could have had the same effect. It’s nothing to do with how they play in the other league games.
As you note, it’s about being the best we can be and we have fallen far short of that. As BR has noted, we are weaker now than last year. This is in a year of record revenue and profit, with arguably the best manager since Stein (back-to-back trebles no less). If we are regressing under such favourable circumstances, what will it be like when the circumstances aren’t so favourable?