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.
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Nuclear Bovril and a Half Munched Pie
08:47 on
14 September, 2012
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.
………….
I pay by DD and got all 3 tickets in the one envelope
MURDOCHBHOY
A couple of things.
A year ago,I was up in Scotland. My computer was not in use. It began sending out unsolicited e-mails,including to a few people on here who let me know via the site.
Mid-April,I was off-line on this account due to my screen being broken. Microsoft traced back the hacking problems I have to-guess when-mid-April.
So it appears that NOT using your computer opens it up to attack.
Check the programmes on you control panel. If there are any on there which do not have an entry under “publisher”,you have a problem.
I had a trojan,cssrs.exe,and a backdoor application,rundll32.exe.
The great thing about these is that when you check your security applications,they will show as running. In actual fact,they will be stopped.
My network and system were being operated by TWELVE different hackers. I hope this hasn’t happened in your case,it is a difficult and expensive repair.
Best of luck.
Microsoft’s phone number is 0800 756 2971
BT
Its OK if you are sorted.
A mate of mine, down south, Coatbridge man was asking but……..
I’m sure the ticket will find a worthy recipient.
EC67
Nuclear Bovril and a Half Munched Pie
If the celtic ticket office ever start to do things efficiently then I will be straight down the parkhead as there will clearly have been some sort of takeover.
If there are 2 things that reassure me that Celtic have been the same club for over 100 years, it’s the fact that registered company number has never changed, and that the ticketing operation has been consistently bad!
Morning
Still blowy in north Glasgow.
Looking forward to a proper game tomorrow. Wouldn’t it be nice to see a couple of debutants.
greenjedi
‘I know they have a big selection problem due to the virus but have St Johnstone asked for the game to be postponed?’
Not yet. They are assessing the players this morning at training and will make a decision then
HAMILTON TIM
You’re too old for debutantes,ya perv!
hoopy-do
08:56 on
14 September, 2012
Strange old world …….. I find the ticket office very efficient, and very nice / friendly fholk……..!!
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS
Thanks for the info, it looks like I’ve a task on my hands.
bobby murdoch’s curled-up winklepickers
08:59 on 14 September, 2012
HAMILTON TIM
You’re too old for debutantes,ya perv!
Nothing wrong with a debutant now and again …!!
From Crass Corner…
Following on from Harry playing skuddy snooker last month, the BBC is reporting that a French magazine has published photos of a topless Duchess of Cambridge, and the Royal family are somehat vexed, and are said to be “Furious”.
The report goes on to say:
“”There has been a significant hardening of William’s response to the publication of the topless photos.”
Achem…
Anyway, I wonder of this generation of young Royals is related to Stephen Gough.
67 HEAVEN
Maybe Peter Lawwell was trying to save us all from ourselves in Jan 2009.
I take it all back wot I said about him……….
THE BATTERED BUNNET 0907
Nae herm tae the lass,but topless pictures of her aren’t gonna cut the mustard.
Mustard disnae go wi fried egs…….
up_over_goal
I’d play him if he declares himself fit but 4-3-3?
Heh heh- A right Royal gaffe as the red tops would say.
Philbhoy- I’m at a wedding too tomorrow so like yourself I will be relying on updates, will not be gutted to see the “match off ” sign go up. (football match, not the nuptials)
.
G’Day Fae a Pretty Chilly but Lovely Jubbley Down-Under..
Don’t even Know who we Play tomorrow but Looking forward to Benfica..
I Remember tipping us to beat them 3-0 the last time they Came to Paradise..Only because l have a Olde 8mm filmed in My Grandads house of the Black and White Television of us beating them 3-0 the First time round..
Summa
67Heaven … I am Neil Lennon..!!.. Ibrox belongs to the creditors
Yeah, im probably being unfair.
I dont like the time you spend on the phone before you actually get to the right Q, there are just too many options that they go through and it costs money, unless you get the direct line number from t’internet and not that premium rate number.
And when you go to the ticket office it’s a bit like queueing for madame tusseuds – you stand outside for ages, then when you reach the door and think its nearly your turn, theres still ages to wait between the door and the desk!
God Bless the ticket office – glad i dont work there at the moment, i would just have a sign stuck to my forehead saying ‘No, there wont be any more tickets for the Barcelona game available”!
Got my three game package before the Hibs game but unfortunately had already booked a holiday in ……..Portugal ! Next week. Off to the Algarve. The son in law is quite happy though, another freeby for him!
Any heads up for a good place to watch it near Albefura ?
lockerz.com/s/244073307
It doesnt really scream “when we are in Seville you”ll be watching the bill.. does it?
Good morning all from a very tired but proud as punch Big Swee who has learned to type one handed while holding his lil baby Ghirl, Freya Patricia Sweeney who arrived this week.
Another generation of Celtic family for the MacSuibhne clan.
Singing her a wee Celtic song every day coz if you know yer history :-)
Gretnabhoy
09:21 on
14 September, 2012
Got my three game package before the Hibs game but unfortunately had already booked a holiday in ……..Portugal ! Next week. Off to the Algarve. The son in law is quite happy though, another freeby for him!
Any heads up for a good place to watch it near Albefura ?
……
Who the hell books a holiday during the fitba season and even more so in the CL period!!!
5 more sleeps to the CL, but 9 more sleeps till Sam comes home to the Hills
Congratulations to big Swee, may God bless and protect wee Freya.
On yersel Big Swee enjoy every moment with wee Freya , cool name for a wee ghirl. Happy dayz mate.
Was wandering why everyone was talking about the game tomorrow. Here’s me thinking it was Thursday today.
SleepDeprivedCSC
hoopy-do ,
not getting on your case but we’ve found the TO to have been nothing but helpful and accomodating since we started The Kano foundation a couple of seasons ago. They’ve always gone out of their way to help us and i know that this recent period , with CL packages has been a time of long hours and short tempers for them .
I wouldn’t like to do it because it must be quite upsetting , especially as a Celtic fan , to have to start telling folks “sorry sold out” , “nothing left” and “have you thought of joining the investors club” .
Sanna (ticketoffice csc)
BIG SWEE
Congratulations to all concerned,get her name down for a season-ticket,and enjoy every second.
Big Swee. Just checked in before heading out to work and your post has set me up for a great day. Well done and never stop singing her that celtic lullaby. HH.
I see the fellow who managed to ‘lose’ €2.25 Billion while working as a trader at UBS is going on trial today.
The guy made a series of wrong calls stretching over 2 years on what is described as ‘synthetic equities’, which is really little more than virtual pitchy. Essentially, this chap called the toss wrong so many times that he’s officially a new scientific discovery.
I can understand that shareholders in UBS might consider that, in breaking internal risk controls, he has breached his duty of care to his employers, and consequently they might sue him for damages (but he doesn’t have the money), but I’m struggling to understand quite why he is facing criminal charges.
Would the charges have been brought if he had called it right, and ‘won’ $2.25 Bn?
Is he being charged with criminal offences simply because he lost a gargantuan sum of money?
Are the people on the other end of these trades – the ‘winners’ – being charged too?
Used to be, prior to the introduction of electronic trading, that stock brokers and fund managers were highly knowledgeable folk. They were able to identify which companies were well managed, which were in growing markets, where the opportunities for consistent dividends lay, and provided advice to their investors based on their knowledge, experience and analysis of companies, markets and trends.
Nowadays, no one’s interested in well managed companies that deliver value back to shareholders over the long term. We want a profit and we want it this morning. The entire system is little more than a massive game of pitchy, one half of the world betting on heads, the other half tails. Billions of times each day.
I’ve got no problem if folk want to bet each other on which sugar lump a fly will land on, but it’s not their money they’re punting with. It’s ours. The traders have no ownership of the outcome. They have no skin in the game. If the bet wins, they take a slice of the winnings. If it loses, they’ve charged you a fee for placing the bet in the first place. It is absurd.
Given what has happened over the past 4 years, where the system has effectively realised it’s in a zero sum game, causing an enduring global economic crisis, it’s probably time we shut the whole thing down.
Punk Rock Clash City Rockers
Magic news from Big Swee. Delighted for all the Swees, Big, Wee and in betweens.
kitalba
4-3-3 would suit a midfield featuring Brown, Wanyama and Ledley. Go 4-5-1 and it gets too congested (see Helsingborg away 1st half for details). Sammi not being available is a blow, but we have excellent attacking players – Forrest, Watt, Hooper, Commons and (whisper it) Paddy – who should all be given the opportunity to express themselves.
4-4-1-1 is another of our stronger formations, giving Commons a chance to influence the play and get ample opportunity for shots from distance.
Anything but 4-1-4-1! Just naw.
Big Swee, all the very best to you and your new arrival and of course not forgetting Mrs Big Swee, a daughter is a wonderful gift to a man..
Starry
The Battered Bunnet
09:44 on 14 September, 2012
”I can understand that shareholders in UBS might consider that, in breaking internal risk controls, he has breached his duty of care to his employers, and consequently they might sue him for damages (but he doesn’t have the money), but I’m struggling to understand quite why he is facing criminal charges.”
Fraud and false accounting.
It’s not so much that he made wrong calls, more that he lied and deceived so that he could continue making wrong calls.
Remind you of anyone?
Cheers for the wishes. My smile keeps getting bigger.
Now Mr Lawell about the Celtic matchday creche :-)
Had a busy week so not managed too much CQN time. I’m sure we had an in depth discussion on Levein’s tactical deficiencies and the benefits (or otherwise) of Heid in midfield.
Looking forward to the real football starting again, although I’m at a conference all day tomorrow so won’t see the game. I’ll be chairing it so even sneaky glances at CQN on the phone may be difficult …
As always with games before Europe all I’m looking for is three points and no injuries.
Big Swee:
Congratulations!!
Big Swee – auguri!