Next Game

Livingston v Rangers

Saturday, 04 October 2014, 15:00

Scots Champ

Ibrox Stadium

Last Game

Rangers 1 - 3 Hibernian

Monday, 29 September 2014, 19:45

Scots Champ

HMRC lose oldco Rangers appeal

Her Majesty's Revenue and Customs (HMRC) has lost its appeal over oldco Rangers’ use of employee benefit trusts, a tax tribunal judgement has confirmed.

Last Updated: 09/07/14 at 17:57 Post Comment

Rangers entered administration in February 2012.

Rangers entered administration in February 2012.

The upper tier judge Lord Doherty dismissed the appeal against a first-tier tax tribunal (FTT) decision in the so-called ‘Big Tax Case’, although he has referred several issues back to the original panel.

HMRC argued that payments made to players and other employees should be taxable but the Murray Group, who formerly owned Rangers, argued they were loans.

The FTT issued a 2-1 majority verdict which favoured, in principle, the Murray Group in November 2012, and ordered that HMRC's £46.2m demands, about three-quarters of which referred to the liquidated club, be "reduced substantially".

The upper-tier appeal has largely upheld that verdict but some payments will be re-examined by the original tribunal, including termination and "guaranteed bonus" payments.

The judgement, which has no impact on the current Rangers regime, reads: "The appeal is dismissed except in so far as it relates to the termination payments.”

In 2000 Rangers began making payments through an Employee Benefit Trust (EBT), which was set up by major shareholder Murray International Holdings (MIH).

But in 2010 the Glasgow club confirmed they were under investigation by HMRC over offshore payments to players and the case played a part in Rangers entering administration in February 2012.

Oldco Rangers was liquidated in June of that year and Charles Green's Sevco Scotland company had to re-launch the club as a new company.

But in November Oldco Rangers won their first-tier tax tribunal appeal in principle against HMRC's demands over EBT payments.

Following the latest ruling, a spokesman for Murray International Holdings said: “We are satisfied that the UTT (upper tier tribunal) has now published its widely awaited decision and note the contents thereof.

"We are pleased with the judgement which again leaves negligible tax liability and overwhelmingly supports the views collectively and consistently held by our advisers, legal counsel and MIH itself.

"The decision substantially reduces HMRC's claim in the liquidation of the old Rangers Football Club.

"While we have been successful in both the FTT and UTT, there are, as we have stated previously, no victors.

"It is obvious that the much publicised existence of these proceedings overshadowed Rangers Football Club for many years and tarnished the external perception of its value.

"There can be little doubt that despite favourable legal opinion, potential acquirers were therefore dissuaded from pursuing their interest during a period in which we were marketing the sale of MIH's shareholding.

"The case has also stimulated extensive press and social media comment, discussion and speculation, a significant quantity of which has been ill informed.

"Notwithstanding all of this, it is abundantly clear that Rangers Football Club would not have gone into administration or liquidation had the purchaser fulfilled its contractual obligations and responsibilities.

"Similar to the resolution of the UTT appeal, we hope that the relevant authorities conclude their investigations and commence proceedings at the earliest opportunity."

Related News

Most Commented

Readers' Comments

I

put Ince in my fantasy football team, so it's no surprise at all really. I do that to players. Also responsible for De Jong and Upson being injured. Think I'll transfer in Di Maria just to ruin United....

megabrow (cufc)
F365's Top Ten Surprise Strugglers

L

ovren? £20m always seemed a touch on the expensive side, but I wasn't expecting him to be quite such a waste of money

stevenjameshyde
F365's Top Ten Surprise Strugglers

H

alf of our players have the physical presence of a 14 year old girl. I don't know why people are always shocked that they're injured.

TheWhiz
Wenger baffled by injuries

Footer 365

Transfer news: Mats Hummels remains fully committed to Borussia Dortmund

Mats Hummels is flattered to be attracting interest from over Europe but has no intention of leaving Borussia Dortmund.

Championship: Fulham owner Shahid Khan names five-man search party for new manager

Danny Murphy, Brian McBride, and Sky Sports pundit Niall Quinn will help Fulham's search for their new manager.

Manchester United confirm Ander Herrera has suffered a broken rib

Manchester United have confirmed that Ander Herrera suffered a fractured rib against West Ham on Saturday.

Mail Box

#Usingfootballersnamesineverydaylife

We have the last of these as well as mails on Liverpool, Wayne Rooney, QPR, Arsenal's injuries and more. It's a mailbox that's Alonso rather than Rafael, if you will...

How Much In 'Pounds Raheem Sterling'?

A whole lot of you use footballers' names in everyday life. And you hate yourselves for it. As you should. We also have mails on Newcastle, Rooney and more...

© 2014 British Sky Broadcasting Ltd. All Rights Reserved A Sky Sports Digital Media property