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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THE BATTERED BUNNET 0944
I remember around the turn of the century discussing with my Dad the fact that ALL the banks had suddenly ramped up,and the explanation being that it was from trading,rather than everyday banking.
Which,of course,the money-grabbing b…..ds insisted virtually COST them money……
We both wondered how it could be that EVERYONE was making a profit from selling the same products back-and-forth.
Insouciantly,rather than naively-in other words,how long did we think they’d get away with it?
The naive part was believing that the checks and balances would bring it to a halt.
In fact,bankrupting most of the world still hasn’t brought it to a halt. They…..just…….cannot….help….themselves.
Dont know if this has been done yet but have a laugh
you tube.. The sweeney even having a go at Rangers
hh
sorry couldnt do the link thing.
Gretna bhoy
Jinky’s bar, Albufeira is the place to go, prime location in the new town. Our games also shown in Shamrock bar(old town) and Erins Isle(Montechoro, 5 mins walk from new town)
There are other bars that show our games to(inc. Devlins in new town) but those are the best I’d say
HH
see those twats Keys and Gray opening up their show with comments on how they are fuming about favouritism in the way the SPL reacted to Juninho’s termination being paid via an EBT.
Amazing the DR can be quite so specific on this and no a mention of their payments.
Interesting also to hear the average hxn who’re always going on about EBTs themselves not being illegal…..they seem not to recognise this with Junhino. They are not; it’s how they are used.
Celtic clearly saw the danger, took guidance from HMRC and reacted accordingly. The Orcs just kept their heads in the sand.
Stupid, stupid Orcs.
Greenjedi………….the wife!!!!
Traditionalist88
Cheers my friend. hH
Kate topless.
Nothing to see here, move on.
hoopy-do
09:19 on 14 September, 2012
LOL……..!!!!
Congratulations to the bigger Swees now
Marrakesh Express
The Sweeney – What are they… Rangers supporters?
Andy Gray is a drunken sexist team formerly known as Rangers supporting Fud
Keevins coming up on talksport to talk about explosive story in the daily ranger…..I wonder if it involves us?
iki
Much more succinct than my effort.
More than a handful may be a waste,but I doubt William will ever know….
The Juninho thing is yet another kick in the stones for the Orcs. You can sense their howling frustration that Celtic are not being done over this…
And yet, for months, their defence of their own club was “EBTs are not illegal”. Which is correct, and is why Celtic are in the clear.
But the way the Huns operated theirs, well, that is where the problems lie.
Incidentally, the MSM (with the exception of Mark Daly) have provided more detail on Juninho than they have on any singly RFC EBT recipient. If only they had used their investigative powers to question Walter, Souness, and the rests’ peculair tax arrangements…
St johnstone will not be asking for a postponement. – offical perth saits twitter
p
The SPL are clearly biased. Imagine letting a team off just because they did nothing wrong. Following the rules? It will never catch on.
iki
10:27 on 14 September, 2012
‘Kate topless.
Nothing to see here, move on.’
Storm in an A cup.
Big swee,
Congratulations!
However, the phrase ‘say hello to the new boss’ may be more appropriate.
S
The bbc calls the publication of oor Katy’s bazoomas “grotesque and unjustifiable”……you just have to laugh.
They are mammaries.
An illegal war, a scandalous cover up, Iain Duncan Smith, these are the kind of things that are grotesque and unjustifiable.
It’sAmadmadmadmadWorld CSC
Morning all from a wet, wild and very very windy North Ayrshire. (According to the beeb, we can expect more of the same next week; where’s the ole Vitamin D?)
Do we have a say on whether St Johnstone game might be cancelled? I hope we demand it goes on? We need to give some of our players a game before the European tie.
Morning CQNer’s
Celts being discussed on – Talksport NOW!!!
If there IS a god in the firmament he will cancel stupid meaningless internationals and just gie us piece and proper football.
One tribe. Celtic F.C.
HH!
miki67
10:52 on 14 September, 2012
__________________________________________
Hear, hear m8.
Internationals have been rank since – Jack Charlton’s era ended. imo
Hail Hail
I havent looked at the Daily Record web site – but the use of words to summarize their article on the BBC web site is very interesting…
“The SPL have revealed they did not investigate Celtic over an EBT payment to Juninho as the Brazilian only received cash after he had left the club. (Daily Record) ”
…Are they trying to imply that the precedent has been set that receiving an EBT after you have left your employment is OK? (while totally ignoring the tax implications etc.).
If so – a very interesting tack to take, and who are they trying to protect? – hmmmm !!!!!
Keys and grey dirty dirty dirty hurting
H*n’s!
Keevins.Uncle Tim !
TalkSport : hun-guffery of the lowest ordure. 3 antiquated discredited fuds talking bilge and stoking up future trouble for fun and money.
ftsfa cqn BAMPOT
10:55 on 14 September, 2012
Keys and grey dirty dirty dirty hurting
H*n’s!
Keevins.Uncle Tim !
____________________________________________________________
At the risk of starting a riot
Keevins is a hurting Tim – just like me. imo
Hail Hail
Accept that is OK for the private life of a uterus on legs to be made public and you are accepting that it would be OK for your private life to be photographed and published.
Godalmighty…… the hun is like a rabid dog with lockjaw…only one solution…
I believe that Internationals should be capped at under 23 level.
They would provide a showcase for young talent and allow the experienced pros to give the best years of their careers to those clubs who pay their wages.
It will never happen, of course. Two many vested interests in the governance of the game.
In the old days, Internationals gave home supporters the opportunity to see a better class of player.
Not now. A good club sidecwill beat any International team, as, in effect, club teams are multi National.
Anyway, there is too much Nationalistic jingoism in the World as it is, without adding the flag waving support of inadequate football teams.
Kevjungle
You are risking a riot !
That clown keevins is banned from paradise so no longer one of us
HH
South Of Tunis
10:59 on 14 September, 2012
‘Accept that is OK for the private life of a uterus on legs to be made public and you are accepting that it would be OK for your private life to be photographed and published.’
It’s one of the downsides of being in the public eye.
Anyone in that position knows there is a reasonable expectation that they will be photographed if they appear topless where they can be seen.
ITALIABHOY 1037
One of the better buys in the Dickie-days was Artur Numan.
When his contract was up,he refused to re-sign,and was VERY vocal about his remuneration being cut by 50%.
Possibly his EBT was raising suspicions from over-frequent misuse,who knows……
Either way,he chose to retire rather than accept the cut.
He clearly had an axe to grind then-he was still a current Netherlands international-and I don’t think it would take much for him to spill the beans.
ftsfa cqn BAMPOT
11:06 on 14 September, 2012
Kevjungle
You are risking a riot !
That clown keevins is banned from paradise so no longer one of us
HH
____________________________________________________
Disagree.
Maybe it’s time that the light was shone on the clowns that banned Keevins ?
big swee walks on with neil lennon
09:24 on
14 September, 2012
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.
Congratulations hope you are all in good health in sunny Tottington.
” Royal stories ” of whatever type, are propagandistic tripe, and the only reason I’m aware of them is because to escape them you’d have to be dead.
They are all of the variety : there’s no such thing as bad publicity.
A useless ruthless gang at the apex of a much ridiculed class system who have more real power than we are led to believe.
Off with their heads.
Big Swee
Congratulations on the arrival of baby Swee :o)
God Bless
Hail Hail
On TV yesterday Andy Burnham gave credit to David Conn, saying it was his article on Hillsborough which had prompted him to set up the tribunal.
There are one or two decent, courageous journalists out there