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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Kevjungle
I will end this in the style of keevins
i.e “My dads bigger than your dad”
The man! Was once a journalist now he’s a old fool
H.H
Dontbrattbakkinanger
11:12 on 14 September, 2012
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
____________________________________________________
Agreed M8.
Courageous journalists huvny been seen in these parts since
a certain – Gerry McNee(hunskelper extraordinaire) hung up his pen. imo
Hail Hail
KevJungle – Murdo..10 men Championees..1979
Sorry, can’t agree he is a hurting tim.
The man is an utter tool of the highest order and, if he were a Tim, shames himself daily with the rubbsh he spouts.
Princess Kate (Tit Picture)
http://t.co/kVPoEpjj
ftsfa cqn BAMPOT
11:17 on 14 September, 2012
_____________________________________________
If you think that Celtic were right to ban Keevins then
why the inaction when – McLean and Nevin virtually
pi##ed all over Celtic’s customers/supporters ?
BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS, 11:08
He’s not alone, there is another former Dutch international who may have something to say on the matter
Okay…..who looked?
jimmci
11:17 on 14 September, 2012
KevJungle – Murdo..10 men Championees..1979
Sorry, can’t agree he is a hurting tim.
The man is an utter tool of the highest order and, if he were a Tim, shames himself daily with the rubbsh he spouts.
___________________________________________
Wouldn’t know of this stuff you mention.
I have to confess…..
KevJungle – Murdo..10 men Championees..1979
11:20 on
14 September, 2012
ftsfa cqn BAMPOT
11:17 on 14 September, 2012
_____________________________________________
If you think that Celtic were right to ban Keevins then
why the inaction when – McLean and Nevin virtually
pi##ed all over Celtic’s customers/supporters ?
…………..
One could be cynical and say that it was because he had ago at the club, the other two &^%^&^ had a go at the fans!
Kevjungle
Gerry Mcnee?????
Remember his minty moonbeams story?
The not Fat PLG to revolutionise Scottish football !!
Become euro greats LOL LOL LOL LOL LOL
greenjedi
11:23 on 14 September, 2012
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Ah, and there was daft me thinking that the fans WERE the club.
ftsfa cqn BAMPOT
11:24 on 14 September, 2012
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Must be getting yer wires crossed my friend.
There were more conspiracies carried out from the LL
against McNee at times, than there were about Celtic.
If Ye Know Yer History – CSC
Of Course….
In Backward,Corrupt Sicily
Totally Dependent On The Largesse Of The Industrious Northern Europeans To ‘Keep The Wolf From The Door”….
It Is The Mafiosa Who Act As The ‘Local Royalty’….
And Of Course….
They Just LOVE Intrusive Publicity……
Dontcha Know….
I see the Hun Troll is starting early today trying to get a reaction.
Quite sad really…
ASonOfDan
11:30 on 14 September, 2012
I see the Hun Troll is starting early today trying to get a reaction.
Quite sad really…
__________________________________________
Didny take you long eh ?
Can everyone please refrain from engaging with Kev Jungle? He is employing the tactics of the likes of Keevins and McNee to draw attention to himself. If he genuinely believes the nonsense he’s writing then he has to be one of those hurtin’ Kellys or Whites. Not one Celtic supporter is hurting in these happy, happy days.
Parkheadcumsalford
11:32 on 14 September, 2012
______________________________________
Not looking for a ruck my friend but
ach, never mind
Kev
The fans are the lifeblood of the Club, but the Club is the Club! In the same way if you have a child, you support it, feed it and provide for it, but you are not the child!
Kev is Gerry McSherry!!!
greenjedi
11:35 on 14 September, 2012
_____________________________________________
Justifying Keevins ban and – at the same time – excusing the inaction v’s McLean and Nevin
I mean – who is being worked from the back here ?
Well, I know it ain’t me.
KevJungle – Murdo..10 men Championees..1979
Do you know why Keevins was banned?
Sorry Lhads, I’ve got a bit of sympathy for kevj’s argument, there are a lot worse out there than keevins that are still welcome to Celtic park, IMO he was an easy target.
Someone the hun did not care about except to use as an example of injustice and censorship.
Why has traynor never been banned
Nosonofdan….
I would have thought that you would be ‘shacking-up’ with Salman Rushdie…..
After you OUTRAGEOUS comments about our hard-working Polish and Slovak emigres last week.
Pope John Paul II would have been turning in his vault….
In the Basement of Saint Peter’s….
(ThumbsUp?)
parkheadcumsalford
I know I shouldn’t have taken the bait,But I had three teeth removed yesterday and The Codine has numbed my brain :)
p.s kj I know my history
Blantyretim
Eurochamps67
Just a short post to thank you both for interest in my spare Benfica ticket. Eurochamps67 I would have given you the ticket as you replied first but I did not/do not know how to obtain an e-mail address from Paul.
I saw your post to BT this morning clearing the way for him which I though was decent of you. Sorry for my computer ignorance. I sent two e-mails to username@aol before my wife explained the mysteries of computer e-mail addresses to me.
Hope you enjoy the game BT.
Now to find a pub in Barry SW to watch the game!
Kev,
I think I see where you went wrong their.
You state that the “fans WERE the club”.
As most Celtic people know, unlike our former rivals, the club is the business and playing side of Celtic, incorporated in, I think, 1899.
We are supporters of said club, some with a sort of apostolic connection going back to 1887.
However, we are not the club.
On an emotional sense, we are ONE.
Like a sort of Trinity.
Each dependent on the other.
Put it another way.
It is like a three- legged milking stool.
If one of the legs break, you would fall on your a… .
I hope this helps.:>)
The Board, the Playing Staff and the Support. Each dependant on the other.
Green Oak Tree
11:39 on 14 September, 2012
KevJungle – Murdo..10 men Championees..1979
Do you know why Keevins was banned?
__________________________________________________________
Yes.
For highlighting the fact that _ having agreed to a tribute game for Celtic Legend Sean Fallon, Celtic decided that it was more important to, face Real Madrid in a friendly at the other end of the globe for £1mill.
The folk who currently run Celtic are – Robin Hoods in reverse. imo
Their = There
Kev
We are the League Champions (and will be for years to come)
We are in the Champions League
The Huns are DEAD!!!
Don’t worry, be happy
thomthethim
11:43 on 14 September, 2012
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Sumdys got their knickers on back to front here.
Well, I know it ain’t me.
The Singing Detective Demands The Resignation Of Campbell Ogilvie
OUTRAGEOUS?
Between the two of us, who works in the Civil Service and would know if it was outrageous or not?
John Anthony
your email at swizz505@msn.com just gets bounced back.
I still want the ticket, any ideas?
get my email from Paul?
set up a meet on here?
Ticket for a Coatbridge bhoy in England, so I need to know before he travels, if the ticket is still on.
Thanks in advance,
EC67
greenjedi
11:45 on 14 September, 2012
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I’m not worrying
just don’t like being shafted
by folk in Wall Street atire.
kevjungle – murdo..10 men championees..1979
11:45 on
14 September, 2012
thomthethim
11:43 on 14 September, 2012
____________________________________________
Sumdys got their knickers on back to front here.
Well, I know it ain’t me.
************
sorry, you’ve lost me there.
Explain please, and keep it simple, as I am a simple man.
KevJungle – Murdo..10 men Championees..1979
11:43 on
14 September
Have you a source to prove that to be the case?
Kev
Apologies if I’m getting you mixed up with somebody ewlse, but did you not say you don’t go to games at Celtic Park?
Paul67, looks like you have upset SevcoMedia…
When the SPL are in a hole it can actually be quite amusing, as well as disturbing, to watch them keep digging.
Today’s quotes from an SPL ‘spokesman’ (utter coward for not putting his name to it) is an example of deflection at its best – a denial of a different question to that which is pertinent.
“In the case of Celtic’s EBT for Juninho he wasn’t paid while he was kicking a ball for Celtic. He received payment after he’d finished playing for the club.”
When Juninho actually received the payment is irrelevant – it’s when Celtic made that payment which is the issue. Did Celtic make a payment to an EBT while Juninho was under contract?
Here are some facts. Juninho signed a two year contract on 25 August 2004. He lasted eight months and left on 5 April 2005. He was obviously due money for the remainder of his contract and, it appears, that amount was agreed at £765,000.
Celtic made that payment to Juninho as part of the agreement for him to leave. The payment was a condition of the contract being cancelled – no payment, no cancelled contract. Which came first, the payment or the cancelled contract?
Are we expected to believe that on 5 April 2005, Juninho woke up, ripped up his contract, and said to Celtic: “See that £765,000 you owe me, just send it on later when you get a minute”? It is inconceivable that the payment was not made prior to the contract being cancelled.
In any event, the £765,000 payment would have to be accounted for in Celtic’s books on 5 April 2005. If accounts were drawn up to that day, the £765,000 payment would be there, whether credited to bank or to accruals.
CQN, that rabid voice of the boardroom, discloses that in 2008 Celtic advised HMRC about the payment and HMRC’s view was that it was income and therefore tax was due to be paid (and some sort of deal was done). It could only be income if it was contractual. If it was paid into an EBT outside of contract, it would not have been income or taxable.
It is also of note that the SPL rule does not make, and never has made, any comment about when a payment is made. It is the fact of the payment that is important, not when that payment is made.
Returning to the SPL spokesman with the shovel, it is perfectly true to say that Juninho “wasn’t paid while he was kicking a ball for Celtic” and that he “received payment after he’d finished playing for the club”.
But that is not the question. Why the alleged Celtic-supporting Iain Blair didn’t ask the right question at the time, or indeed now, I’m struggling to get my head around. Well, actually, I’m not. If it looks like a cover-up and smells like a cover-up … it’s probably just the SPL acting with “sporting integrity”.
The media are fed a line from the SPL/SFA/Celtic (*delete as appropriate) and they can’t jump quick enough to exonerate their team and keep Lawwell happy. Which all goes to show just what a bunch of cowards or bigots, or both, the media in this country are.