Tribunal allow Rangers appeal

Rangers' appeal over their use of Employee Benefit Trusts has been 'allowed in principle' by a tax tribunal.

Last Updated: 21/11/12 at 07:29 Post Comment

Rangers: Ibrox outfit have seen appeal 'allowed in principle'

Rangers: Ibrox outfit have seen appeal 'allowed in principle'

More of the games that matter

Upgrade in minutes or watch with a NOW TV Day Pass.

The tribunal ruled - by two votes to one - that during the use of the scheme between 2001 and 2011, 'monies received by employees were not paid to them as their absolute entitlement'.

Rangers had claimed that these payments, which were reported to be close to £49m, were loans as opposed to wages and were not liable to tax.

The tribunal has now ruled that Her Majesty's Revenue and Customs assessment of what became known as 'the big tax case' should be 'reduced substantially' with only some payments subject to tax.

In a statement, it said: "It was conceded that advances in favour of certain players are taxable and liable to NIC (National Insurance Contributions), and 35 we have found that, in certain other limited instances, there may be a similar liability.

"To that extent the assessments should stand. In these circumstances we expect that it is sufficient that we allow the appeal in principle.

"Parties can no doubt settle the sums due for the limited number of cases mentioned without further reference to the tribunal."

Murray International Holdings, who were majority shareholders of the oldco Rangers until Craig Whyte took over in May of last year, backed the findings of the tribunal.

In a statement, they said "We are satisfied that the Tax Tribunal has now published its widely awaited decision and note the contents thereof.

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

The decision does not affect the current football club at Ibrox, which was

reconstituted as a new company when the oldco Rangers was consigned to liquidation in June.

HMRC confirmed it is considering appealing against the decision: "We are disappointed that we have lost this stage of the court process and we are considering an appeal.

"The decision was not unanimous and the diligence of HMRC investigators was acknowledged by the whole tribunal.

"HMRC is committed to tackling avoidance and it is right that we challenge the type of avoidance seen in this case."

Rangers chief executive Charles Green believes the verdict "undermines the validity" of an SPL investigation into alleged undisclosed payments to players.

A statement from Green read: "The judgment serves to further undermine the

validity of the commission into the use of EBTs.

"As we have said all along the SPL decision to press ahead with a commission

was ill-timed and fundamentally misconceived."

More of the games that matter

Upgrade in minutes or watch with a NOW TV Day Pass.

Related News

Most Commented

Readers' Comments

I

t's a bloody good goal, though. Sh!t, the kid's gonna be the worlds best before we know it, isn't he? He's got the touch of genius in him. Like Neymar, but with muscles and stuff. He's doing a Ronaldo as we watch. He's bulked up to be able to ride the tackles, but he's improved technically as well. His touch is sublime. Bugger.

HarryBoulton
WATCH: Hazard's stunning goal

A

hhh, Jose arguing with another managers wife, clearest sign yet that we are going mental during the close season. I am rocking back and forth on my haunches.

hump3.
Jose hits back at Rafa's wife

I

t's only a matter of time before one of them throws in a yo mamma

lee
Jose hits back at Rafa's wife

Footer 365

Manchester United's Angel Di Maria close to PSG switch

Laurent Blanc claims Paris Saint-Germain are close to completing the signing of Manchester United midfielder Angel Di Maria.

Man Utd 0-2 PSG: Zlatan Ibrahimovic inspires win

Manchester United were denied a fourth consecutive pre-season victory as they slipped to a 2-0 defeat to PSG in Chicago.

Chelsea fail with £25m bid for Everton's John Stones

Everton have rejected an improved bid of £25m from Chelsea for centre-half John Stones, according to Sky sources.

Mail Box

Mails: This Is My Perfect Moment

Lots of Mailboxers channel their inner Martine McCutcheon to bring you their perfect footballing moments. Plus thoughts on Blatter, names, and Chelsea worries...

Mails: Let's Talk About Jose's Failures...

We don't talk about them because Chelsea won the title...but imagine if LVG or Brendan Rodgers had signed Juan Cuadrado. Plus, a trawl through the squads...

© 2015 Sky Ltd. All Rights Reserved A Sky Sports Digital Media company