Jump to content

 

 

HMRC granted leave to appeal


Recommended Posts

http://www.bbc.co.uk/news/uk-scotland-glasgow-west-21326039

 

HM Revenue and Customs (HMRC) has lodged an appealed against a tax tribunal ruling in favour of Rangers' use of Employee Benefit Trusts (EBTs).

 

HMRC had claimed the scheme, which was used from 2001 to 2010 to make £47.65m in payments to players and staff in the form of tax-free loans, was illegal.

 

Rangers disputed this and a First Tier Tax Tribunal (FTT) ruled the scheme did not breach tax law.

 

The case will now be heard at a Second Tier Tax Tribunal (STT).

 

HMRC said on Monday that it had been granted leave to appeal against the FTT decision and that the appeal had subsequently been filed.

 

If the dispute is not settled at the STT, it is possible that it may go all the way to the Supreme Court - a process that could take years.

 

The FTT, before three judges, concluded in January, by a majority of two to one, that the EBT payments were loans, not earnings, and so were not liable for income tax.

 

CVA rejected

 

Rangers began using the EBT scheme while under the control of Sir David Murray.

 

He sold the club for £1 to Scottish businessman Craig Whyte in 2011, while the tax liability was in dispute.

 

Rangers were subsequently forced into administration by HMRC in February 2012, over non-payment of tax totalling about £14m, while under Mr Whyte's control.

 

HMRC subsequently rejected proposals for a creditors agreement that would have allowed the old Rangers to continue.

 

Administrators Duff and Phelps then negotiated a sale of assets to a consortium led by Charles Green for £5.5m.

 

He has since re-launched the club in the Scottish Third Division

Link to post
Share on other sites

Yes, looks like this will be happening over the coming months.

 

Could take years Frankie for what, I'm sure I read each EBT case must be taken on its own merits so the precedent theory is out the window, it just looks like pure vindictiveness.

Link to post
Share on other sites

HMRC subsequently rejected proposals for a creditors agreement that would have allowed the old Rangers to continue.

 

Administrators Duff and Phelps then negotiated a sale of assets to a consortium led by Charles Green for £5.5m.

 

He has since re-launched the club in the Scottish Third Division

 

Persistent liar McLaughlin at it again, hiding his signature - again.

 

BTW, unless I am mistaken, the appeal would only be granted based on a point of law? Which "point of law" was deemed appealable then? Are there not restrictions placed on the possibility of appeals? Any legal brain here to clarify?

Link to post
Share on other sites

I'd imagine there will be dozens of such points, D_B.

 

More fool HMRC for pursuing this given they'll be unable to secure any financial return but someone certainly thinks the issue is worth repeating. As a club and support we now need to move beyond it and not let it affect the new company's operations.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.


×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.