HMRC to appeal Rangers tax case defeat

by Calum Fuller

More from this author

08 Aug 2014

  • Comments
Kenny Miller celebrates a goal - Image credit efecreata mediagroup and Shutterstock

HM REVENUE & CUSTOMS has sought leave to appeal against a tax ruling over Glasgow Rangers' use of an employee benefits trust to remunerate its players and staff.

Last month, HMRC was defeated in an upper-tier tax tribunal which upheld a first-tier ruling that the corporate entity which formerly housed Rangers, now in liquidation (oldco), had legitimately used the scheme between 2001 and 2010 to pay £47.65m to players and staff in tax-free loans.

The arrangement was challenged in the first-tier tribunal by HMRC, which said it was illegal. Rangers disputed the bill and the tribunal held the payments were loans that can be repaid and, as such, were not taxable.

An HMRC spokesman said: "HMRC continues to believe that schemes using employee benefit trusts to avoid tax do not work. We have applied for permission to appeal the case to the Court of Session."

The coming round will be held in the Court of Session should HMRC receive the right to appeal.

The original dispute stems back to when HMRC issued a winding-up order after the club failed to pay its tax liabilities, estimated to be about £14m. Craig Whyte purchased the club for £1 from Sir David Murray less than a year before the club collapsed. it was under Sir David that club began its use of EBTs.

Administrators from Duff & Phelps negotiated a sale of the club's assets to a consortium led by Sheffield United chairman Charles Green for £5.5m. Green has since formed the new club, which plays in the Scottish Championship.

Liquidators from BDO were appointed to Rangers oldco and are currently investigating the books to determine whether further repayment can be made to creditors, and to pursue any outstanding debts owed.

The ongoing legal battle does not affect the current Rangers regime.

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Appointments to University Committees

University of Glasgow 120x60University of Glasgow - Glasgow - unremunerated positions

 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.