Last Game

Motherwell 3 - 0 Rangers

Sunday, 31 May 2015, 15:00

Scots Prem PO Final Round Play-Offs

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

W

ell, if he'd be unable to reject an offer from Barcelona or Madrid, he may as well join Arsenal while he's waiting for them to call. It's a logical progression.

bouldasbrass
Lacazette: I'll only leave for CL

D

zeko is nothing more than a Bosnian Andy Carroll.

uncle monty
The New Dawn Gossip

A

h ha ha, excellent. Let's hope he goes on the run. Then they hunt piggy down for scoffing all the apples. At least he's done something right - he has united football fans, regardless of who they support, against FIFA and all those at the top who have been bleeding the game for their own means and giving nothing back.

GVMUFC
Blatter 'under investigation'

Footer 365

Benitez emotional at Real unveiling

Rafael Benitez refused to discuss Real Madrid's apparent interest in Raheem Sterling and David de Gea at his Bernabeu unveiling on Wednesday.

Rafa Benitez named new coach of Real Madrid

Rafa Benitez has been confirmed as the new coach of Real Madrid on a three-year contract.

Prince Ali targets interim FIFA presidency before an election

Prince Ali of Jordan is investigating if he can be FIFA's interim president before an election, according to Sky sources.

Mail Box

Does Anybody Care About Russia?

Do any of us really care about the decision to give the 2018 World Cup to Russia? We're not sure anybody does. We have mails on Blatter, Rafa and lots more...

Celebrate Good Times, But Hard Work Starts Now

The Mailbox is joyous over the impending departure of Sepp Blatter, but offers a reminder that problems remain. Plus title winners, CL play-offs and Nigel Adkins...

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