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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Mag7
Try being in wee Oscars familys shoes begging folks to help save their wee bhoy and millions are chucked at these low life!!
hamiltontim
I had to close my Twitter account tonight I got hundreds of abusive tweets after I insulted My Fry about his poor poor taste!!
You wouldn’t believe the stuff people wrote…
What a gaff thon Twitter is..
and so to bed
http://www.youtube.com/watch?v=Jg-oJKYIinQ
HAMILTON TIM 2341
Howdy,buddy.
Burning the midnight oil again?
I’ve had a bit more time to spend on the night-shift this week,but it’s been fairly quiet.
By then,it seemed everyone everyone was all argued out!
I truly hate international fortnights……
s p
I do that every night and have done so for years and years and years.
Night all
Night wee Oscar & izzie x
jude2005 is Neil Lennon \o/
23:45 on 13 September, 2012
Mag7
Try being in wee Oscars familys shoes begging folks to help save their wee bhoy and millions are chucked at these low life!!
the fact that the Methadone programme is a mistake is not the point
what did you expect her to pay??? and given she was a junkie how did you expect her to pay??
bit of a low blow there to be honest!
Auldheid & Wonkyradar,
It is just my opinion but TJTF is totally New Age and all about Christian Mysticism, the blurring of the lines and the merging of religions. I’m sorry we are in a fallen World, we can’t fix things.
Remember the First commandment, if you are Christian. Try as you may, no human can fix things.
Christianity is incredibly simple and it is simple for a very specific reason.
And HH btw. ;))
http://www.crossroad.to/Quotes/spirituality/templeton.htm
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS
Alright m8ty. I hope you are doing well. Are you in work or got time off?
crushed nuts
To hot in the kitchen 4 you??
Millions wasted on drug addiction programs and very little on situations like wee Oscars!!
THAT CLEAR ENUFF FOR YOU??
Blantyre Tim
You have mail
Mag7
She had a dog tied up outside the chemists probably costing her abt a fiver a day. Or maybe it was a benefit dog and you & I are paying for that too?!!
j a
He’ s in bed.
jude2005 is Neil Lennon \o/
23:45 on
13 September, 2012
Mag7
Try being in wee Oscars familys shoes begging folks to help save their wee bhoy and millions are chucked at these low life!!
———————————————————————————————————-
The people you see ‘chucking methadone down their necks’ are not to blame for a shortage of resources in other areas. Add up how much the tax cheats, of all stripes, take out of the fiscal budget, compare it to the amount spent on programmes designed to help people get their lives’ back on track. Vodafone owe the UK £6 billion in tax, just one company!
The reason we are faced with the ‘austerity’ of Osbourne is because banks were irresponsible in the way they lent money for short-term profit.
The taxpayer put £800 billion into the bank bail-out, methadone is less than 0.0001% of that.
Anyone gone to jail?
Hillsborough, anyone charged?
Bloody Sunday, anyone charged?
Herald of Free Enterprise, anyone charged?
Marchioness, anyone charged?
Bradford, anyone charged?
Kings Cross, anyone charged?
Birmingham six, anyone charged?
c n’t
I take the situation thats in front of me just now and thats Wee Oscars !!!
c n’t = crushed nuts Sorree
jude2005 is Neil Lennon \o/
00:10 on
14 September, 2012
c n’t = crushed nuts Sorree
—————————————–
you were right the first time! ;)))
Run rabbit run rabbit run run run
The Charles Green bluster along the lines of “I dont recognise the authority of this court”
Reminds me of similar grandstanding statements you usually hear in the Hague from despotic dictators faced with evidence they just dont want to hear.
no surrender is not an option this time csc
Starry
It was your post that prompted mine. Really dislike Fry intensely.
BMCUW
Yep out delivering to the good and not so good of north Glasgow :-)
Blantyretim
Have received notification that my e-mail to the address you gave “username@aol.co.uk” was “undelivered” can you e-mail me please at swizz505@msn.com if you still want benfica ticket.
Thank you
An old video reposted that I think some have not seen. A very long video, only watch when you are bored or very interested.
The New Age.
http://www.youtube.com/watch?v=4XIkqGE21-0
hamiltontim
00:20 on 14 September, 2012
Starry
It was your post that prompted mine. Really dislike Fry intensely.
BMCUW
Yep out delivering to the good and not so good of north Glasgow :-)
__________________________________________________________
Fry influences people which is a crying shame.
Scratcher night night
http://www.youtube.com/watch?v=iPeVIuRjUi4
From The Independent:
“Hillsborough was not used as a semi-final venue from 1982 until 1987 because of a serious crush during the 1981 semi-final there, between Tottenham Hotspur and Wolverhampton Wanderers which, as in 1989, resulted in the opening of Exit Gate C to relieve the crush. The panel documents reveal that the near disaster in 1981 prompted a major breakdown in relations between South Yorkshire Police and Sheffield Wednesday, with neither accepting responsibility. The panel found that Wednesday’s “primary concern was to limit costs” amid pressure for ground improvements. One of the 400,000 documents seen by the panel shows that after the abandonment of the 1989 semi-final the club pursued Kelly, seeking compensation for lost revenues. Kelly then asked his staff “whether he should consider the [Wednesday] letter or whether we had any problems with the FA making any donations”, according to one note.”
Priorities, eh?
Run rabbit run rabbit run run run
john anthony,
imagine he meant Blantyretim@aol.co.uk, no?
HH
Delighted to hear this.
I had the impression that his career was in doubt.
B.B.C.
Scott Brown hopes the last two weeks of complete rest will mean a return to action for Celtic and Scotland in the near future.
The midfielder has been struggling with a hip injury but says he could be available for Celtic’s trip to face St Johnstone on Saturday.
“Hopefully, I might try to play on Saturday. If not, Wednesday,” he said, referring to the visit by Benfica.
macjay1 for Neil Lennon
You are so right there m8. Scott Brown has been Immense for Celtic and has been Growing nicely alongside our Incredible manager.
Broonie is the first name on the team sheet for me, Everytime!!! and everyone knows I love wee James, Victor and Sammi. We have plenty other top players alongside the ones I have mentioned.
I’d add Fraser to the first names on that hallowed first 11. ;)
I must admit, I think our chances of winning the Big Ears again have went down a bit without Sammi for the first few games. If we survive without him, the World is our Oystercatcher.
We are in it to Win it.
I can now see us winning it, especially after our signings this close season. They were very good signings, the way the Celtic Support have synthesised with the Board and their price plan for the CL shows a lot of Dermot Desmond and also a lot of Neil Lennon in the thought process. I Really like that.
If we don’t win it this season then I can see us winning it soon.
petec
23:49 on 13 September, 2012
I remember reading an article in their paper, cannot remember where I got it, where they asked a number of scientists to try and come up with answers to the questions of life. How come the Earth is just the right distance from the sun to enable life?. Stuff like that. The conclusion amused me in that they said that whilst they could find no direct evidence the suspicion was that something, somewhere was monkeying about with existence.
On reading the link you provided I see they have encouraged research into love and forgiveness. I’m a fan of the healing power of forgiveness, once set up a web site to help those who had abortions to forgive themselves before their guilt killed them.
Anything that helps the understanding and application of love and forgiveness has something of a Christian value to offer imo.
PETEC,HAMILTON TIM
Sorry,missed your replies as updating the computer.
Pete-off to work for a few hours around 2am
HT-Don’t be delivering any Methadone or people on here will not be pleased.
On which subject,I’d rather people who needed it got it for free than steal for the alternative.
Or need it myself,come to that…
Auldheid,
You know I have praised you often and plentiful and I’m sure you are not comfortable with praise. It is in the very definitive nature of your own personality for a very specific reason. Imagine you had a different personality with the incredible mind you have?
As I say, Christianity is extremely simple for a reason. Concentrate on that Fully would be my advice. And who am I to administer advice to anyone, A Drunkard as well.
auldheid 0119
i THINK THE LYRICS IN THIS EXPLAIN THE NEED FOR SUCH A SITE.
http://www.youtube.com/watch?v=q1dCFbGqcqM
Sorry about caps shift in above post!
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS
You are a consummate professional or getting paid a packet on call. ;)
HH m8
petec
Recently watched a clip of Fry in a debate about the negative effect that the Catholic Church has on the world.
He spoke of the ‘unnatural’ situation where “priests, nuns, bishops and cardinals” live without having sexual relationships.
He failed to see the irony in relation to his own lifestyle.
Anyway bed calls.
PETEC 0136
Or full shift for three hours,as it turns out……..
hamiltontim
Fry is a hater of the message. We are all Sinners.
It is really that simple.
HH m8
PETEC 0203
He’s applying a rational and intellectual thought process where faith is required.
Belief in God,if we’re honest,does not survive rational analysis.
If you believe in God,however,rational analysis is not required.