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.
You can continue to read CQN Magazine FOR FREE, or can subscribe for £10 or £20 and our sponsor, Executive Shaving, who offer an enormous range of grooming products, are offering readers a £20 voucher for all £30 CQN Magazine subscribers.
[calameo code=0003901711e92eb7539d6 lang=en page=16 hidelinks=1 width=100% height=500]
830 Comments- Pages:
- «
- 1
- ...
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- »
Morning,
Game tomorrow and all I can think about is Benfica.
Anyone else hearing the stories ibrokes cannot get a fire safety certificate.
STEVO
Dunno if you spotted my post yesterday thanking you for your help.
Thanks,mate.
Celtic_first:
I’m with Russell. I’m not sure that the existence or non-existence of God can be empirically determined. Thing is, you could say the same about the tooth fairy.
I’ve no problem with other folk ascribing to faith based belief systems I just kimit my own to Celtic.
Not sure exactly what Fry has said and, from the comments can only presume that it was especially insensitive. If I’m honest though I do enjoy QI and wouldn’t want to allow a person’s educational background and sexual orientation to affect my opinion of them…
STEVO
In answer to your question,the purpose of the police is to protect and serve……..
The Establishment.
It’s been a long time coming, this birthday of Maggies. A long long long time.
Happy belated birthday old old man woman child.
MWD
stevo,
they’re still pretty good with the ole directions, and of course the obligatory smiley press photo with a Rubinesque West Indian lady at Notting Hill Carnival.
Actually spent some of the wee small hours dipping into the Hillsborough online archive. Came across – wasn’t hard, well organised portal – some scans of the changed statements.
There’ll be a part of a witness statement about how the SYP should have acted differently. A biro line through it with a ‘Police Adverse’ note alongside. Imagine doing that systematically for a living.
Talk about the Banality of Evil.
HH
On the early trainto Glasgow from Aberdeen..back up tonight. Feels like weekend already. Son playing tomorrow morning then Celtic game on Tele.. Then off to visit a new Celtic fan born this morning – my new nephew !
SYP;the same force who tried to discredit the miners….(after attacking them on horseback etc)
my uncle was a miner in Doncaster during the strikes….
Canny stand people who come on here announcing their birthday.
Attention seekers!
I’ve been on this Blog for three years now.
Dis anybuddy know when my birthday is?
Naw!
Lonely, lonely people!
cults
olympic parade due in George Sq at 5.30 tonight..
busy busy…
happy birthday Phil…. o))
Happy Birthday Philbhoy ;-)
It’s not today ghuys……I’ll give you a heads up next April!
Thanks anyway!
Phil
I’m sure Olivia will come on here and tell us the exact date next year…
I’ll guess on April 13th?
kitalba
The reports on Brown were too serious to be swatted away by remarks from a press conference. Think Brown saying he’s fit for both games is just Brown being a trooper.
If he is being kept back for the CL, then it would be churlish to leave him out because he hadn’t featured in the previous couple of games.
I think Lenny should go 4-3-3 v Benfica, and Brown/Wanyama/Ledley is a world class central midfield.
I will be attending a wedding tomorrow, giving the Bride away, so won’t have access to CQN until I get home on Sunday!
I would be grateful if Bjmac, MWD or Golfstar10 would text me if anything exciting happens at the game.
Thanks in advance!
bt
I never thought of that.
Right, she’s grounded.
Jobo
Close!
Gotta go!
bobby murdoch’s curled-up winklepickers
You are welcome. Hope you get sorted out soon
…. Serve the establishment by controlling the masses. I believe traffic wardens are now just ward end and carry warrant cards …… Why? Because the asses are waking up?
Masses!!!!
blantyretim,
quite a few commentators have made the Orgreave link.
Apparently the SYP got a brand new HQ after the miners’ strike, and it is known locally as ‘Orgreave House’.
I can’t get the Red Riding Trilogy out of my mind…suspects being tortured in ‘the belly of the beast.’ (New HQ).
Um, Happy Friday everyone…:)
TOTING TIM
When Maggie had finished her wee St Francis speech,her next act was to give the police and armed forces a H-U-G-E pay-rise.
At the time,my Dad said that it wouldn’t take long to find out why.
I see the Daily Record trying to twist the Juninho EBT. Instead of just calling it severance pay, they are making out we sneaking did not pay him until after he left.
Stupid Huns…
Whither the cash strapped scrofulous hillbillies the day?
Quick query folks.
Ordered the 3 match package online for me and the nephew. Envelope through the door yesterday only had the Benfica tickets it it.
1st time ordering like this so wondering if the others are to follow or have they cocked up?
Hoping a more knowledgable CQNer can save me the multiple 10ps a call to the TO will cost!
Many thanks is in advance
Wee Catriona is celebratin’ ole Philbhoy’s birthday by havin’ a duvet day.
She’ll be snug as a bug in her Minnie Mouse jammies.
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS
I’m just back from a couple of weeks away on holiday and I’m trying to catch up on things.
I noticed your post yesterday about your trials in trying to re-establish your Microsoft email and I’m in the same position. I was able to restore my hotmail account but I’ve found it’s been been hacked and emails have been sent from my account to everyone on my ‘contacts’ list with a dodgy attachment (I’ve warned all recipients this morning).
I’ve also noticed that downloads of videos and pictures are very slow which would indicate something is amiss but I haven’t found any malware.
If I find anything I’ll let you know.
nuclear bovril and a half munched pie
I got all three with the season ticket purchase but bought an extra set and only got the benfica ticket. Either you are fine or we are both in trouble!
Nuclear Bovril and a Half Munched Pie
yip, i only got the befica ticket as well, i think this is pretty normal. If the postman doesn’t deliver the other ones by midday on the day of games then you have permission to panic!
Celtic_First: your post @ 07: 43 stirred my curiosity, causing me to skim back through the night shift’s latest offering and find some great stuff on metaphysics from (in particular) wonkyradar, Petec and Auldheid.
Thought-proviking stuff, guys; thanks.
Who says international breaks are boring … ?
FF
I know they have a big selection problem due to the virus but have St Johnstone asked for the game to be postponed?
proviking??!
Nuclear,
I got tickets for others also; only Benfica tickets so far.
DBBIA,
Now, now what was it we agreed about comments on wee cat’s decorage?
Phil,
I’ll guess April 1st.
John Anthony,
Did you miss my post, posted shortly after yours, last night?
Wet and very windy up here in Joboville.
HH
EC67
Stevo and hoopy-do
Ta very much. Sounds like I am not alone. Just thought it odd that they are doing multiple postings rather than sending them out in a oner with footballs finances facing Armageddon!
Thanks again.
And thanks eurochamps67 also
Eurochamps
I emailed John Anthony this morning and said you asked first
See his post last night with his email address