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."

TEAMtalk Facebook Fan Page

The TEAMtalk fan page is a great place to meet like minded people, have football related discussions and make new friends.

Related News

Most Commented

Readers' Comments

T

his is all good fun, but anyone who thinks United are 4th best in England for anything more than a blip is properly f***ing mental. And Domenech is properly f***ing mental.

megabrow (cufc)
Schneiderlin must join United - Domenech

I

f the answer is Matt Phillips, the question should never be Who is one of your major transfer targets?

jelasfirsttouch
The Twosome Gossip

I

s this Chris Smalling playing the 'Race' card?

hump3.
Smalling wants United race

Footer 365

Barcelona sign Arda Turan from Atletico Madrid

La Liga champions Barcelona have announced a deal to sign Atletico Madrid midfielder Arda Turan.

Koeman: Utd Schneiderlin bid 'not serious'

Ronald Koeman says Southampton are yet to hear back from Manchester United since rejecting a bid for Morgan Schneiderlin that "wasn't serious".

Benzema facing uncertain future at Real

Real Madrid boss Rafa Benitez is reportedly planning to play Cristiano Ronaldo as a lone striker in a move which could sideline Karim Benzema.

Mail Box

Van Persie: Really Expensive Wallpaper

He was bought to cover the cracks that nearly brought down the house, says one Man United fan. We also have mails on Brendan, the WWC, Aguero and...

Farewell Robin, You Were Wonderful

One Mailer looks back fondly at Robin van Persie's time at Old Trafford as he nears the exit. Plus Turkish delights, being inspired, David Ospina, handballs & decisions...

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