Supreme Court Case - Hearing 15 & 16 of March

[der Berliner 3,246]

Since SSN just saying that HMRC want to pursue individual folk for their cash ... and we'll sure hear more from the media about it, here the official stuff:

 

 

 

RFC 2012 Plc (in liquidation) (formerly The Rangers Football Club Plc) (Appellant) v Advocate General for Scotland (Respondent) (Scotland)

 

Case summary

 

Issues

Whether the Court of Session erred in law in reversing the specialist Tribunals below and concluding that payments of "emoluments" or "earnings", for the purposes of the Income and Corporation Taxes Act 1988 and the Income Tax (Earnings and Pensions) Act 2003, had been made by the appellant to its employees.

Whether, in order for a payment to constitute earnings for PAYE and NIC purposes, it is sufficient that the payment was "derived from" work done by a particular employee and/or it "it formed part of the employee’s employment package".

Whether the powers which each employee held as protector of a subtrust had the effect that the funds in that subtrust were unreservedly at the disposal of the employee and were earnings for PAYE and NIC purposes.

 

Facts

Murray Group Management Ltd established a Principal Trust for the benefit of its employees and the employees of any group company including the appellant which entered into a deed of adherence. The appellant established a number of subtrusts for the benefit of their employees families. The appellant would pay a contribution to the Principal Trustee with a direction that a sub-trust be established and funded for a family of a particular employee. The employee was appointed protector of the subtrust, and the subtrust trustee would lend the employee money that had been advanced to the subtrust from his employer.

 

The Commissioners for Her Majesty’s Revenue and Customs determined that these payments constituted earnings for PAYE and NIC purposes and sought to impose charges to tax.

The First-tier Tribunal allowed the taxpayers appeals and held that no payment of earnings had been made. The Upper Tribunal refused the Commissioners appeal. On appeal, the Court of Session held that payments of earnings for PAYE and NIC purposes had been made by the appellant. It found that the payments made to the Principal Trustee, and in due course to the subtrusts, amounted to a re-direction of income.

The Court of Session granted permission to appeal to the Supreme Court on the question of whether the payments were earnings.

 

Judgment appealed

 

[2015] CSIH 77

 

Parties

 

Appellant

RFC 2012 Plc (in liquidation) (formerly The Rangers Football Club Plc)

 

Respondent

Advocate General for Scotland

 

Appeal

 

Justices

Lord Neuberger, Lady Hale, Lord Reed, Lord Carnwath, Lord Hodge

 

Hearing start date

15 Mar 2017

 

Hearing finish date

16 Mar 2017

 

https://www.supremecourt.uk/cases/uksc-2016-0073.html

[boabie 230]

Lord Hodge was the guy whos ruling stiffed Ticketus when he decided the matter should be determined via Scots Law.

[Anchorman 0]

Actually think this will be such a carve up that Judge Lance Ito should preside.

[ian1964 10,415]

It has no bearing on us!, even if the result goes in favour of Rangers it won't stop the haters from hating!

[Anchorman 0]

It has no bearing on us!, even if the result goes in favour of Rangers it won't stop the haters from hating!

 

Great point. I think we actually thought way back around the time of the first hearing that it would vindicate us if we won. NOTHING will see us accepted or even liked in this country and we should wake up and smell the coffee on that one. I don't actually give a flying feck about this now!

[the gunslinger 3,366]

It has no bearing on us!, even if the result goes in favour of Rangers it won't stop the haters from hating!

It might. The oldco wint have much debt if they win.

 

 

[RANGERRAB 3,258]

Let's say oldco wins this case. Got rather a lot of money then hasn't it ?

 

There's the £5.5m Greenco paid for the assets in 2012. Then there's the £24m(!) BDO got from CB. And if BDO successfully sue D&P for £29m then that's a tidy sum of somewhere between £50-60m depending on figures used.

 

That money should easily pay off any outstanding debts should it not ?

 

And if Whyte gets convicted who owns oldco with its cash in bank ?

[aweebluesoandso 290]

Hope HMRC finally get their Ides of march on this date.

[der Berliner 3,246]

...

And if Whyte gets convicted who owns oldco with its cash in bank ?

 

Rather hypothetical, but methinks OldCo was owned by MIH which itself is in the state of been removed from history ... or was it?

 

Sir David Murray companies wound up amid financial problems

 

A number of companies run by former Rangers owner Sir David Murray are being wound up.

 

The metals and property entrepreneur has petitioned the Court of Session to appoint Deloitte as liquidators for Murray Group Holdings.

 

The action is also being taken for subsidiaries Murray Group Management, Premier Property Group and Murray Outsourcing.

 

Notice was given on 5 January but only published on Tuesday 13 January.

 

The documents state that a meeting was held in Edinburgh at which Sir David Murray conceded that company liabilities have forced the action.

 

His business empire has run into conflict with its pensioners over a lack of funds to fulfil their expected pensions. It has been reported that there is a £22m shortfall in the pension fund, and pensioners will have to take reduced pay-outs as a result.

 

Liquidation follows moves, under pressure from the Bank of Scotland, to sell off various assets which Sir David Murray had owned.

Rangers sale

 

The highest profile sale was of Rangers. With control of 85% of shares, Sir David sold them to Craig Whyte for £1 in 2011, while it carried debts of £18m

 

Its assets were subsequently liquidated. Under new ownership, the football club remains the subject of intense controversy and speculation about its future.

 

Following the finance crisis in 2008, the Bank of Scotland required Sir David to sell property, metal suppliers and Response outsourcing and call centres, some of which his family had bought through its different companies.

 

In the case of Murray Group Management Limited, formerly Murray International Holdings (the parent company), the general meeting passed the resolution:

 

"That it has been proved to the satisfaction of this meeting that the company cannot by reason of its liabilities continue its business and that it is advisable to wind up the same".

 

The move puts the companies into the control of John Charles Reid and Christopher McKay of Deloitte, as joint liquidators.

 

The notices published on 13 January in the Edinburgh Gazette state that creditors have eight days to respond.

 

In a statement on Wednesday, the joint liquidators said they would "manage the orderly wind down of these nine entities in accordance with their statutory duties.

 

"Creditors' meetings will be held for these companies in due course."

 

The nine companies are: Murray Outsourcing; PPG Land; Premier Burrell; GM Mining; Murray Group Holdings; Murray International Holdings; The Premier Property Group; Murray Group Management; and MMH NSS.

 

http://www.bbc.com/news/uk-scotland-30805669

 

But that is for our business experts to unravel.

[forlanssister 3,050]

Rather hypothetical, but methinks OldCo was owned by MIH which itself is in the state of been removed from history ... or was it?

 

 

 

http://www.bbc.com/news/uk-scotland-30805669

 

But that is for our business experts to unravel.

 

Did Whyte not transfer the shares to Green hence the Sevco 5088, Sevco Scotland debacle.

 

The status of Sevco 5088 is "active" and despite being given a Directorship ban Aidan Earley in an extremely rare move was given permission to remain as a Director of Sevco 5088.