Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a656050
HMRC lodges appeal against Rangers over use of EBTs
by Brian Cantwell on Feb 05, 2013 at 10:49
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.
News sponsored by:
Today's top headlines
Challenged by growing risk aversion?
Challenging financial markets over recent years have resulted in growing risk aversion among British savers and led many to seek safety in cash. Click here for more.