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HMRC lodges appeal against Rangers over use of EBTs

by Brian Cantwell on Feb 05, 2013 at 10:49

HMRC lodges appeal against Rangers over use of EBTs

HM Revenue & Customs (HMRC) has lodged an appeal against Rangers’ use of Employee Benefit Trusts (EBTs) to facilitate around £49 million worth of tax-free payments, The Herald Scotland has reported.

Three months ago a First Tier Tax Tribunal found in Ranger favour that this money was not liable to be taxed, as it was in the form of loans rather than wages.

The Herald reported the ruling as saying: ‘monies received by the employees were not paid to them as their absolute entitlement' and hence were not applicable for income tax and national insurance.

However the taxman, which originally argued the loans were in effect player and staff wages, and so liable to income tax and national insurance, has taken action on its pledge to fight the Tribunal's ruling and it will now be heard at the upper tax tribunal (UTT).

If HMRC is successful, a tax debt would be added to the millions left behind by the old club company, now known as RFC 2012.

7 comments so far. Why not have your say?

madmitch

Feb 05, 2013 at 15:57

So if these players and staff were paid in the form of loans, is it not now in the remit of the administrators to pursue the trustees and the beneficiaries as debtors to the club.

I would imagine there would be a pretty penny or two available recover.

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Gordon via mobile

Feb 05, 2013 at 16:05

Witch hunt. Even if they did reverse the original decision old co is liquidated so no money can be received. Why are HMRC pursuing this!!'

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madmitch

Feb 05, 2013 at 16:58

Could it be precedent setting, other clubs doing similar things could then be on the hook.

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Luxemburg3r

Feb 05, 2013 at 21:40

Another win for Baxendale Walker. The loans are probably made to an offshore trust with no named beneficiaries and trustees who could care less about HMRC. Seems the Tribunal did not concur on disguised remuneration.

I wonder if Murray and White will sue?

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alan macfarlane

Feb 06, 2013 at 09:31

Uhm, HMRC will, if ultimately successful, seek to wrest the money from Murray Group Holdings, not any Rangers FC organisation past, present or future. I would assume that MGH will have some money left.

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Luxemburg3r

Feb 08, 2013 at 19:03

I doubt very much that HMRC will get anywhere unless they ultimately win in Court. If this remuneration trust has been set-up and managed correctly I think Mr Baxendale Walker will have won again. I don't think he has lost a case to HMRC yet (happy to be corrected).

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alan macfarlane

Feb 11, 2013 at 09:41

To Luxemburg3r

Isn't that HMRC's aim - to win in court ?

And if they do, there should be plenty of cash within MGH to get their hands on.

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