HMRC appeal over Rangers case

Her Majesty's Revenue and Customs (HMRC) has appealed a tax tribunal which ruled in favour of oldco Rangers.

Last Updated: 04/02/13 at 17:08 Post Comment

Rangers: Won the 'big tax case' in November

Rangers: Won the 'big tax case' in November

An appeal has been lodged by Her Majesty's Revenue and Customs (HMRC) over a tax tribunal which ruled in favour of oldco Rangers' use of Employee Benefit Trusts (EBTs).

Rangers effectively won its "big tax case" in November, following a First Tier Tax Tribunal which heard the club's appeal over a bill relating to the use of EBTs.

A majority verdict was delivered that allowed the appeal in principle and declared that the assessments of HMRC be "reduced substantially".

Two of the three judges decreed that only some of the payments made to players through EBTs were taxable but that many of them could be described as loans, as the club had argued.

In a statement, two tribunal judges agreed with the club's outline case.

They stated: "The majority view reflects the argument that the controversial monies received by the employees were not paid to them as their absolute entitlement.

"Thus the payments are loans, not earnings."

HMRC said at the time it was "disappointed" with the decision, and a spokesman said on Monday: "We have lodged our appeal on the Rangers EBT case."

Rangers was under the control of Sir David Murray when it began using EBTs. He sold the club for £1 to Craig Whyte in 2011, while the tax liability was in dispute. The old club went into administration in February last year, owing up to £134 million to unsecured creditors.

The decision came too late to save oldco Rangers from being wound up and does not directly affect the current Ibrox regime.

The club was relaunched as a new corporate entity in June when the original company was consigned to liquidation.


Click here for completely free £10 bet with Sky Bet & £5 free every week


Related News

Most Commented

Readers' Comments

Y

es, these stats are right. Rio Ferdinand definitely had a better debut than Fernando.

that man
Top Ten Debutants From Opening Weekend...

I

know it's only one game, and Arsenal have got an amazing midfield as is; but seriously, is Arsene Wenger the only person on Earth who doesn't want Cesc at their club?

Ezy_Rider
Top Ten Debutants From Opening Weekend...

P

S - 'Squeezes [English] out of his mouth like it's an elastic band he's found in his lamb bhuna' - bravo. Marvellous stuff

Ezy_Rider
Football Managers On TV: Paul Lambert

Footer 365

Women's Football: England beat Wales 4-0 to make World Cup

England's women secured their place in the 2015 World Cup courtesy of an emphatic 4-0 victory over Wales in Cardiff.

Transfer News: QPR sign Eduardo Vargas from Napoli on loan

Queens Park Rangers have confirmed the signing of Eduardo Vargas from Napoli on a season-long loan deal.

Roy Hodgson says England youngsters should try their luck overseas in future

Roy Hodgson feels future generations of England stars would benefit from going overseas rather than being bit-part players at home.

Mail Box

Man United Fans Clutching At Straws

While the focus is on Liverpool's move for Mario Balotelli, one Man United fan tries to convince the mailbox with nine reasons why Angel Di Maria would prefer them to PSG...

Rojo Is A Better Signing Than Hummels

There's some big talk in the morning mailbox, which claims that Man United were right to sign Marcos Rojo instead of Mats Hummels. Plus, one Gooner's happy Arteta's out...

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