Rangers tax case: Hearing in HMRC's appeal over clubs use of EBTs

[ian1964 10,457]

The latest hearing in Rangers' 'big' tax case over their use of offshore trusts to pay staff is taking place on Friday.

 

HM Revenue and Customs are appealing a decision delivered by the First Tier Tax Tribunal last year over Rangers oldcoâ??s use of employee benefit trusts (EBTs) in paying players and staff.

 

The long-running case relates to the use of the tax avoidance scheme during Sir David Murrayâ??s tenure at Ibrox, between 2001 and 2010, which the tax authority believes resulted in the club owing £36.6m in national insurance and income tax.

 

Last November, the three-person tribunal could not reach a unanimous decision in the case, but found most of the trusts were "valid" and payments made to players and staff were loans that are "recoverable" by the trusts.

 

However, the tribunal conceded some advances to players were taxable and any bill is likely to be "substantially reduced" from the original assessment.

 

On Friday, a directions hearing in HMRCâ??s appeal of that finding is scheduled to take place at the Upper Tribunal in Edinburgh.

 

The hearing will be held in private and will allow both sides in the case to set out their positions ahead of a full substantive hearing, which will take place at a date to be agreed later.

 

After the initial decision, HMRC said it was "disappointed" with the tribunalâ??s findings over the use of the scheme by Rangers oldco and four other companies owned by Murray Group - Murray Group Holdings Ltd, Murray Group Management Ltd, the Premier Property Group Ltd and GM Mining Ltd â?? which it believed owed a total of £46.2m.

 

A spokesman for Sir David said after the First Tier Tribunal verdict last year: "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 (Murray International Holdings) itself."

 

Sir David sold his 85% stake in Rangers oldco to Craig Whyte for £1 in May 2011. Administrators Duff and Phelps had been appointed by owner Craig Whyte with the company up to £124m in debt in February last year, before it was consigned to liquidation in June 2012 after it failed to agree a company voluntary arrangement.

 

The club's assets, including Ibrox stadium and the Murray Park training complex, were sold to the Charles Green-led consortium in a £5.5m deal last year.

 

http://news.stv.tv/west-central/233437-rangers-tax-case-hearing-in-hmrcs-appeal-over-clubs-use-of-ebts/

[der Berliner 3,290]

I was under the impression that an appeal will only go ahead if there is new legal (sic!) evidence?

[Super Cooper 0]

I guess the two who voted in our favour have now been inTIMidated enough to change their verdicts?

[RANGERRAB 3,306]

Total waste of time & taxpayers money. HMRC are worse than Sellik. Can't accept they lost.

[Frankie 8,186]

'Nobody has won until HMRC wins' is what Tomo and his cheerleaders really think and hope for.

[Zappa 0]

'Nobody has won until HMRC wins' is what Tomo and his cheerleaders really think and hope for.

 

In fairness, that's the HMRC mindset in a nutshell. They don't do losing.

[crucible 0]

Isn't this Murray's problem and oldco's, it certainly isn't ours.

[Frankie 8,186]

Isn't this Murray's problem and oldco's, it certainly isn't ours.

 

Yeah, it's effectively irrelevant to us unless the SPL/SFA decide to use a changed verdict to try again to remove titles etc.

[Super Cooper 0]

Yeah, it's effectively irrelevant to us unless the SPL/SFA decide to use a changed verdict to try again to remove titles etc.

 

[RANGERRAB 3,306]

In fairness, that's the HMRC mindset in a nutshell. They don't do losing.

 

They will waste as much taxpayers money as they wish trying to get money they'll never see. When you're the public sector money is no object. No conception whatsoever of the real world