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Tax, rules, Juninho and EBTs

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The SPL yesterday released a statement concerning the Employee Benefit Trust payment Celtic made in 2005 to Juninho, in response to what sounded like unfounded allegations made earlier this week.

The league noted, “we have seen reports regarding an EBT in relation to a former player of Celtic FC.  The SPL has investigated the arrangements and documentation in that case and has determined that there is no evidence of any breach of SPL Rules”.

Many good employers have understood the benefit of assisting individual members of staff during times of crisis or personal hardship.  One very practical way of doing this is to lend them money, which happens in businesses up and down the country every day.  When the nature of these transactions involve either a company of sufficient size, a lengthy repayment period, or a high value loan, a formal structure is needed to establish the terms of the transaction, not only for the benefit of employer and employee, but also for the tax authorities – who authorise tax-free payments of this kind.

These tax rules were not established to allow wealthy individuals to escape their social duty.

Not long after Rangers first operated an Employee Benefit Trust Celtic were approached and offered consultancy to establish a similar scheme.  The promised benefits were huge, vast quantities of cash would no longer go to HMRC and would be freed up to spend on new players.

Celtic were not convinced.

Loans would need to be repaid and if not, contractually binding transactions would need to be documented in accordance with SPL and SFA rules, and this very documentation would make them liable for tax.  For Celtic, EBTs could only be used in limited circumstances, would be unable to deliver a significant impact on the business, and would introduce a further layer of professional costs.

“How can these work?” That was the question. How on earth can a club pay millions of pounds into a Trust none of which is contractual? Players, and their agents, like to have things written down. If you write it down and inform the authorities, you’re taxed on it. Celtic were not prepared to enter any written agreement and not declare it to their auditors, HMRC or the football authorities.

What was the cost of this principled stance?

In season 2004-05 former World Cup winner, Juninho, arrived at Celtic from Middlesbrough on a straightforward contract, his only contract with the club, which was correctly registered with the football authorities.  He only lasted eight months before agreeing to terminate his deal.  Celtic made a payment of around £750k into an EBT the player had from before his time at the club.

Celtic informed HMRC of the details of their EBT transaction with Juninho and were told this was regarded as income, not a loan, and that they would need to pay tax.  Celtic then paid tax due on top of the £750k which went to Juninho.  It was a pointless and expensive exercise for Celtic, but they dealt with it honestly and openly.

The club’s understandings of EBTs from five years earlier were confirmed, this was not a way to avoid taxation by filtering part of a player’s income away from PAYE.  Board members of any other club which understood how to make this work were clearly a lot smarter than our guys.  They were also able to buy players and win leagues while our board were hammered daily for their prudent values.

I bet directors at that other club are sounding pretty contrite now, humbled by the emerging news. There will be no self-serving vainglorious rabble rousing.

Far from Celtic being subject to criticism on this matter, scrutiny of their actions will only reveal the stark cost of following the rules when others don’t.

Congratulations to the campaigners who for 23 years sought Justice for the 96.  We all watch the game in a safer environment because of the loss endured by the families bereaved at Hillsborough.  Yesterday’s report condemns the actions of many: some senior police officers, sections of the media, one or two of who should never work in the industry again, and a former MP, whose actions were truly appalling, and who remains a knight of the realm, but those running the game, those responsible for Health and Safety standards, and various governments have a responsibility to bear.

Dangerous crushing inside and outside football grounds was a fact of life in the 1980s, including at the Janefield St entrance to Celtic Park.

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  1. Neil canamalar Lennon hunskelper extrordinaire on

    the hillsborough conspiracy could only have been perpetrated by a secret society

  2. As I see it regarding the criminal activity by the authorites after Hillsborough

     

     

    1. Anyone who changed their statement, encouraged others to change their statement or knew it was going on and did nothing should be prosecuted and if convicted, jailed.

     

     

    2. Anyone convicted should (if still serving) be sacked and loose all pension rights and if they have retired loose all pension rights and ne made to pay back any money already taken in pension rights. If they have to sell their homes, tough!

     

     

    3. For those who have since died, their estates should be sued for the money.

     

     

    4. All those involved in the cover up who have had honours should have them stripped retrospectivly

  3. Paul67,

     

    “Celtic informed HMRC of the details of their EBT transaction with Juninho and were told this was regarded as income”

     

     

    So were the SFA & SPL informed of this part of the contract, if it indeed was classed as income?

     

    That’s what that other lot are clinging too.

  4. I bet you are delighted Paul to have an official response from the SFA re: the juninho EBT.

     

    At least it backs up OFFICIALLY what you have said repeatadly that Celtic did the right thing and have no case to answer.

     

     

    Also Hail Hail to the families of the ’96’, no words will bring back their loved ones or ease any of their pain but at least the blatant lies from the “press” government and police have been shown up for what they are. LIES!!!!

     

     

    YNWA

  5. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    TECHIE HELP REQUIRED

     

     

    Microsoft have blocked my hotmail account. When,as directed,I asked for a new password to be sent to a different address,and entered it,they then gave me an e-form to fill out to confirm my identity.

     

     

    This I did.

     

     

    Every time I do this-daily-it remains blocked,and I have to repeat the process-with the same blinkin’ result!

     

     

    Anyone got any ideas?

     

     

    I have some important info on this account which I’d rather not lose!

     

     

    Thanks in advance,from yer favourite Luddite…..

  6. CharlieAdam'sSister'sPants on

    Sorry for being a dim, but I’m a bit confused. Does this mean Juninho’s EBT was originally from Middlesborough? How did we end up paying it? I assumed it must’ve been a pay-off when he left.

  7. lefthandpillaroldjungle on

    hello from sunny pefkos….35deg. just catching up,…are that lot still around ?….has arthur daily been called to task yet over his underhand comments ?… HH…

  8. greenjedi

     

     

    That’s what should happen, but, as usual, it probably won’t. I have no faith in our judicial system and I believe said people involved will get away with it. As usual. As the old saying goes, the devil looks after his own. I very much doubt Cameron and his cronies will investigate this any further which is sickening to say the least.

     

     

    HH

  9. Declarations of membership of any secret society (not just the freemasons) is a prerequisite for any organisation that demands trust.

     

     

    Will we ever see this introduced?

     

     

    No chance!

     

     

    As long as the brethren are allowed to help each other out with promotion and cover up each other’s mistakes we will have to make do with incompetent Masonic tossers bumbling about at the highest level.

     

     

    Google “Police Typing Error” and see what Glasgow has as Ass. Chief Constable.

  10. It’s all a ‘Timmy’ conspiracy dontcha’ know? ‘The unseen Fenian hand’ is everywhere.

     

     

    The Vatican controls everything – seen and unseen – through nefarious societies like the Jesuits, Opus Dei, the Sovereign Knights of Malta, the Dominicans (the modern day Inquisitors) and others.

     

     

    It must be true – because this is what I keep hearing.

     

     

    I am no longer a practising Catholic – I’m just a Celtic supporter – but I’m still paranoid with a chip on my shoulder. Again it must be true – keep being reminded of it.

     

     

    HH!!

  11. Jelly And Gelato on

    dksglen 11:41 on 13 September, 2012

     

     

    “Celtic informed HMRC of the details of their EBT transaction with Juninho and were told this was regarded as income”

     

     

    So were the SFA & SPL informed of this part of the contract, if it indeed was classed as income?

     

    ===

     

     

    I was going to post the same question, since it is fundamental to the dual-contracts issue. I’m guessing they did since there is no case to answer but clarification would be good on this.

  12. Neil canamalar Lennon hunskelper extrordinaire on

    he had an ebt set up before he got to Celtic, he asked Celtic to use this facility for his severance pay, only a hun would have a problem understanding what Paul67 has clearly explained.

  13. the singing detective demands the

     

    resignation of campbell ogilvie

     

    11:46 on

     

    13 September, 2012

     

    theweegreenman

     

    10:57 on

     

    13 September, 2012

     

    Kitalba

     

    The holocaust resulted in the death

     

    of over 1 million Jews.

     

    White man’s arrival to the New World

     

    resulted in 59 millions deaths. 59

     

    million!

     

    ~~~~~~~~~~~~~

     

    My Dear,Dear weegreenman….

     

    I Harboured High Hopes For You….

     

    I Thought You Could’ve Been A

     

    Contender…!

     

    Now You’ve GONE AND BLOWN IT..!!

     

    Revealing Yourself To Be None Other

     

    Than Bold Canamalar’s Dullard

     

    Sibling..

     

    Attilla & His Huns Brought The ‘Great

     

    Plague’ To Western Europe In The

     

    730s..

     

    Killing 66 Milion Souls….

     

    ‘Pontius Pilger Kitalba’ Has Yet To

     

    Pass Judgement On Dearest Attilla….

     

    He May Yet Get A ‘Waiver’….

     

    For Being ‘Of Sufficiently Swarthy

     

    Appearance”…..

     

    Ah Suppose It Will Depend Oan

     

    Whether The Bottle Of

     

    ‘Glenmorangie’ Is Viewed As ‘Half-

     

    Full’…. Or ‘Half-Empty’….

     

    At That Particular Moment Of Time….

     

    Or If A Wee Swallow-Tail Butterfly

     

    Takes An Extra Wing-Beat…..

     

    Deep In The Amazonian Jungle….

     

    http://listverse.com/2009/01/18/

     

    top-10-worst-plagues-in-history/

     

    Sack The Bored! Sack The Bored!

     

    Punt The Old School..Demolish Paddy

     

    McCourt…..

     

    (ThumbsUp?)

  14. There is a video of ally swally on youtube giving craig brown a masonic handshake. Their masonic vileness permeates through every layer of society, from the bottom right up to the lofty heights of the elite.

  15. Neil canamalar Lennon hunskelper extrordinaire on

    sea cucumber,

     

    there wasnt 66 million people on the planet at the time of attilla ya clown

     

     

    CharlieAdams…,

     

    aye yea ur

  16. Singing Detective

     

     

    Attila the Hun may have killed 66million people, i haven’t corroborated this fact yet, but two wrongs don’t make a right.

     

     

    Can’t we have a debate without resorting to name calling?

     

     

    HH

  17. Dontbrattbakkinanger on

    That ole Attila, not called a hun for nothin’ , with his yersinia pestis ridden flea ridden rattus rattus, spreadin’ their bubos from here to Constantinople.

  18. Thegreenfaerie @ 11:56

     

     

    Of course, without sworn testimony, it’s almost impossible to prove, but as you and I and plenty of others know – often through personal experience – there’s plenty of circumstantial evidence to back up your view.

     

     

    I have a hope/hunch that the demise of der Hun is evidence of the dwindling influence of freemasonry in Scottish life.

     

     

    Dwindling, but not gone by any stretch of the imagination …

     

     

    FF

  19. CharlieAdam'sSister'sPants on

    Thanks for explaining it Canamalar, that was what I thought had happened. But I’m still not a hun.

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