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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mickbhoy1888
20:21 on
13 September, 2012
That is the standard TC reply, you’ll get it every trip. They first have to establish if you qualify for a ticket then they make sure they can fill the plane. Last year against Udinese I think they confirmed about 2-3 weeks before the game.
well apart from the Moscow bit!
Spurs v Barca nextgen on Eurosport at mo. 1 0 Barca.
oldtim67
Auldheid will be there, we will be meeting up somewhere for a beer or three.
BT has my mobil number, I will be there about 3-4 in the afternoon.
Auldheid can talk for scotland BTW, just warning you :>)))
…………………………………………….
mickbhoy1888
Are you donig the back the same day trip ?
Will only be in Barca for the game, back early next morning.
Will be in Portugal for a few days, looking forward to it, never been before.
I am astounded of forehead..
went to get myself a whisky..
what to choose?
anyway I picked a bottle of Celtic Malt whisky that was in the cupboard..
The bottle is nearly half finished.. I haven’t even opened it yet..
I have either been ripped of again by that skallywag PL
or I have a bottle half full man…
prestonpans bhoys-I don’t think the SPL accept sick lines etc to cancel a game,they will be told to field a team no matter what.HH.
Marcotti and Kelly superb on Talksport at the moment. If you ever thought about buying any red top again then listen to the girl from Leicester was on pod cast but taken off. Emailed them and Talksport just waiting for her permission to play it. Was in tears listening to her.
My granda used to tell my gran that the whisky evaporated, now I believe him…
blantyretim.
I found it.
Wonkyradar.
Each to their own mate. Dawkins for me everytime.
HH
!!Bada Bing!!
20:31 on
13 September, 2012
Hope you are right because I’m staying in Perth for the night with Mrs Prestonpans and Miss Prestonpans is getting the train back to Edinburgh, which cost me £14.80 for an open one day ticket :-(
oldtim
good man…
BMCUW:
Exactly the same happened to me on an account I’d used for over 5 years. I couldn’t remember accurately the answers to some security questions I’d set when setting up the account and that was the end of it. I offered them all kinds of potential means of proving my identity but never received a response. I will never use a free mail account again…
blantyretim
20:33 on
13 September, 2012
My granda used to tell my gran that the whisky evaporated, now I believe him…
Whisky doesn’t evaporate, it just goes to heaven!!
The Exiled Tim ,
How are you getting to barca ? there are really cheap flights going from Alicante !
seanpat@18:16 – Thanks, do you know if they were selling them right up until kick-off? Or was it just the morning? I thought there was a chance they would be selling them in the city centre somewhere (like Milan did in the banks). It’s just that I’m driving up from the Algarve after getting off a plane, so Morning won’t be an option.
Fellow bloggers and overseas supporters in particular, please lend me your ears.
The following was posted this morning on CQN just before the latest blog went up so some of you may not have seen it.
Celtic Launch Overseas Season Ticket
http://www.celticfc.net/newsstory?item=3073
I’ll copy it in full in a moment but I thought I would explain the underlying principle behind it from my perspective, since much of my thinking has been influenced by what you guys have been saying both on CQN and at supporter meetings some of us have attended.
Nobody asked me to do it but I have formed the view over the past few years that Celtic need to create alternative avenues to spread the load of supporting the club over as wide a support base as possible.
I’m halfway through an article (and CQN is part of that story) that I hope Celtic Underground will use that explains how I came to this conclusion, but this initiative embraces the charitable ethos on which Celtic is based with the reach of technolgy and the need to grow our own support at home and abroad. The response to it by overseas supporters will be crucial in setting the future course. That response does not mean joining, although if you are fortuneate enough to be able to join please do.
What Celtic need to guage is the appetite for this kind of approach from our overseas support (of which I am about to become one – timing eh?) and I hope you will provide that either on the blog itself or by e mail to Auldheid via Paul. It is a start but could it do more, what else is needed to make it attractive, that kind of stuff. I’ll make sure it gets back to Celtic and I’ll argue your case if it needs it.
By: Newsroom Staff on 13 Sep, 2012 08:14
CELTIC Football Club is delighted to launch our first ever Overseas Season Ticket in our 125th anniversary year, in conjunction with the Celtic Charity Fund.
Celtic is a truly global club and we want every supporter to have a chance to play their part in this celebratory year.
The Overseas Season Ticket is only available to supporters living outside the UK and Ireland and every seat purchased will provide underprivileged families with the opportunity to attend matches at Celtic Park and experience the excitement first-hand.
As an Overseas Season Ticket holder you will be able to use your seat at any four home SPL matches of your choice during the 2012/13 season.
This ensures that when you are in the position to visit Celtic Park personally, you too can indulge your passion here at Paradise.
The unique benefits of being and Overseas Season Ticket holder include:
+ A season ticket with a special overseas discount applied*
+ A personalised Certificate detailing your seat and your contribution to the Celtic Charity Fund.
+ Complimentary Celtic TV subscription until May 31, 2013.
+ A personalised name plaque on your seat at Celtic Park for season 2012/13.
+ Celtic Charity Fund updates with stories relation to those underprivileged groups who have benefited from the use of your own seat and others throughout the season.
This is an opportunity for every Celtic supporter living overseas to play a unique part in our 125th anniversary. You can support the club and simultaneously support the Celtic Charity Fund in keeping with the spirit in which the club was founded.
Do you remember your first Celtic game? Click HERE
* The price of the overseas season ticket is £300, which is a significant saving on the normal price of £466! Season tickets will be located in areas 412/413 of the north stand upper tier.
HOW TO PURCHASE YOUR OVERSEAS SEASON TICKET
There are various ways in which you can purchase your season ticket:
Download the Overseas Ticket Application Form HERE and return to overseasseasonticket@celticfc.co.uk
Call the Ticket Office on +44 871 226 1888, option 1, option 2**
Register your interest at http://www.celticfc.net/tickets_season_register and we will be in touch!
HOW TO USE YOUR OVERSEAS SEASON TICKET
You will have the opportunity to use your seat a maximum of four times per season.
To use your own seat, please complete the Overseas Ticket Application and return it to overseasseasonticket@celticfc.co.uk no later than four weeks before the match date.
** Calls cost up to 10p per minute, telecoms provider dependant. Mobile and other provider charges may vary.
Can I Have Raspberry-Danny Kelly prog on talksport is usually very good mate.
Had a fantastic evening at St Dominic’s last night supporting Mary’s Meals
If any of you can manage I thoroughly recommend going along to any of their forthcoming concerts to the witness the amazing skill of the tenor Martin Aelred
http://www.list.co.uk/event/251566-martin-aelred/
THE EXILED TIM
20:31 on
13 September, 2012
I’m going to Lisbon as well on the 19th before the day of the game. If interested we have a pint our 10 via prestonpansbhoys@gmail.com
javea_bhoy
Flying from Granada, a bit more expensive, but works out about the same, for what I save on fuel.
Nearly 3 hours from Alicante, just over 1 from Granada.
!!bada bing!!
20:39 on 13 September, 2012
Can I Have Raspberry-Danny Kelly prog on talksport is usually very good mate.
Have to congratulate the station, even though that nazi Mckenzie used to be the boss there.
The Nauseating Fry ?
This Simpering Creep Was Prominent In The Protest Over The Pope’s Visit To Albion In 2010….
He Was Right Across The Media On This Issue…
Like A Bad Case Of Genital Herpes….
He Minced Past Me In The Street About Ten Years Ago….
I Couldn’t Fail To Notice That His ‘George
Galloway’ Was Absolutely..HUGE !
Very Near Caused A Solar Eclipse….
Of Course,Ernie’s Favourite Stand-Up ‘Comedian’….Stewart Lee…
Also Figures Prominently On The List..
Well He Did ‘Create’ The Toxic “Jerry Springer : The Opera”….
Which Has Clearly Been Upsetting All Those Wild-Eyed Christian Copts In Egypt.
Why Are Marxists So Pig-Ugly..?
Still….I’m Sure The Neighbours Assured His Mum He Was A ‘Beautiful Baby’….
Back In The Day….
Interesting ‘Group Of 50’….
With Their Affiliations And Personal Backgrounds….
I Suspect That Many Of Them May Have Cause To Seek Support From The Holy Father,Sometime In The Not To Distant Future….
http://m.digitaljournal.com/article/297570
Can I Have Raspberry-Think he might still be a big shareholder in TS.
prestonpans bhoys
Mail sent
QuadBhoy
20:26 on
13 September, 2012
P.S. wonkyradar @ 12.50 – thanks for the mention of / link to Desiderata. I used to have an untitled print of that which I lost some time ago and I never could find it.
I particularly like the fact it has Barbers Adagio for Strings playing in the background- I think they compliment each other. Perfect poem alongside beautiful music.
noticed the stuff from fry, its a bit rich coming from a guy who was reared in the biggest organised child rape centre in the world, private boarding schools. Didnt anyone ask him how he was introduced to child abuse and whats so funny about fagging, he portrays it as rather a lark in his books, no.
As usual he chooses the easy target, wonder why he doesnt make the same allegations about Islam, no wait, we know exactly why dont we.
THE EXILED TIM
20:47 on
13 September, 2012
Seen you email and returned, I was not expecting you to pay for all the drink, what an offer, some guy :-)
The Exiled Tim.
I’m going to Lisbon also,will try and meet up there as well. I’m going with Johann Murdoch from the blog.
When I posted that wee post to BT saying “I found it,” it was regarding the Estadio Nacional.
I couldn’t find it,I was there in 67 and been back a few times since,and still couldn’t find the Stadium,they have renamed the stadium it’s now called Estadio do Jamor, BT to thank for that,anyway will try and meet up in Lisbon also.
TET @ 20:31
Both Barca and Lisbon on one day trips
Enter………….The Big-Wig…
……Hmmmmmmm…..
………topper.
The Singing Detective:
Interesting article- also noticed the story about the dog:
German Shepherd dog, Capitán, guards master’s grave six years.
God I love dogs- wonderful creatures.
prestonpans bhoys
I’m just that sort of bhoy :>)
I will also bring you a luvely bottle of vino……
It’s sad in modern Scotland to hear of the tales of fear over Phil’s book. I read again the request for details from Salmond’s government (under FoI). We have to remain very vigilant. We are approaching the ‘End Game’.
The SNP know that the ‘Celtic’ vote is gone. This pathetic group of ‘no marks’ is now about to inflict a shocker to end all shockers on us? Surely No?
Oldtim67
Would be good to meet Johan, he sent me a few Celtic crests for my bar, we can arrange to meet up there as well.
Meeting up with prestonpans bhoys as well, so the more the merryier.
Auldheid @2038
As a lifelong Celtic supporter currently living abroad I have decided – today- to purchase an Overseas Season Ticket.
I come over 3/4 times a year – so this works out just fine; and it gladens me that ‘my’ seat will be used by someone else when I am not there.
HH!!
mickbhoy1888
If you are around any of the bars I am in, and you still look the same as your pics, I will recognise you.
Couldn’t fail too :>)))
wonkyradar at 20:23
Bertrand Russell self-identified as an agnostic.