hmfc_steve Posted January 23, 2011 Share Posted January 23, 2011 seen this on the daily record fans response section re game yesterday ...anyone know if there's any truth in it ? or is it just someone rambling on. Would be pretty devastating for the gers if true.. Courtesy of Rip... Rangers' legal battle with HMRC took a serious turn for the worst in recent weeks. The case, which concerns the club's use of an Employee Benefits Trust (EBT) to pay players without paying PAYE or National Insurance contributions, puts Rangers FC's future on the line. In a startling gambit, Rangers' lawyer, Andrew Thornhill QC, has had his second approach to settle the case out of court rebuffed. In this most recent offer, it is understood that the Ibrox club offered an amount just under ?10m. But this was not Rangers first effort at making this problem disappear. Upon taking on the case in the spring of 2010, Thornhill approached HMRC asking what it would take to settle. When that did not elicit a response from the British governments representatives, he threw out an offer of ?3-5m. This was summarily rejected. However, at the time, this was not seen as significant: simply a lawyer doing his job to evaluate all options and test the depth of resolve of the opposition. However, this most recent approach comes with the background of the initial phase of the First Tier Tribunal, which was held in late October 2010. Several of the witnesses called by Rangers were forced into damaging admissions and retractions under cross-examination. The entire case was scheduled to last for two weeks, but Rangers were not even able to complete their rebuttal of the charges- that they had knowingly operated an illegal tax scheme. HMRC's lawyer is widely considered to have "roasted" several senior representatives of the famous Glasgow club. With the tribunal scheduled to re-start in May 2011, the flat rejection of this offer is sure to send a wave of panic up to the top of the marble staircase and beyond. It is understood that it would take an offer to pay HMRC 100% of the original underpayment accrued interest- a total of ?36m- to get HMRC to engage in negotiations over the amount of penalty which would be added. The final amount of the penalty, which has already been billed to Rangers (approx ?24m), is scheduled to be determined in a separate tribunal if Rangers' guilt in operating a tax evasion scheme is established in the current process. HMRC's enthusiasm for going to court can be explained by a desire to establish case law and eliminate any doubt over the use of EBTs to pay contractual obligations such as salaries and appearance money. (Contrary to erroneous speculation in the print media, image rights form no part in the current case against Rangers). One can only speculate whether Alistair Johnstone and the Rangers board still retain their jaunty confidence in the "expert advice"7; they claim to have followed. Their flat dismissals of the risks surrounding this matter and their willingness to write a cheque for ?10m today seem to be in conflict. One financial analyst familiar with the case said: "It looks like the seriousness of their position is dawning on the Rangers board. This looks like they have figured out the maximum amount of money they are able to pay and have decided to offer it now rather than risk almost certain insolvency should they be forced to pay even close to ?64m" nete ref : http://www.dailyrecord.co.uk/football/spl/2011/01/23/jim-jefferies-tells-celtic-to-watch-their-backs-as-hearts-blow-title-race-wide-open-86908-22869496/ Link to comment Share on other sites More sharing options...
stevie Posted January 23, 2011 Share Posted January 23, 2011 Holy sheet that is incredible.I am astonished that more hasn't been made of this,imagine if it was us the press would be creaming themselves. Link to comment Share on other sites More sharing options...
Tiberius Stinkfinger Posted January 23, 2011 Share Posted January 23, 2011 Tax evasion. Not surprised in the slightest. Link to comment Share on other sites More sharing options...
3fingersreid Posted January 23, 2011 Share Posted January 23, 2011 can someone who has a grasp of the leagalities of this tell me whats different about the rangers situation to that of dundees it seems to me rangers are in administration in all but name and IF that was the case 25 points deduction anyone Link to comment Share on other sites More sharing options...
Gigolo-Aunt Posted January 23, 2011 Share Posted January 23, 2011 Would imagine a few football clubs will will be watching this with interest. Link to comment Share on other sites More sharing options...
Le Chat Posted January 23, 2011 Share Posted January 23, 2011 Holy sheet that is incredible.I am astonished that more hasn't been made of this,imagine if it was us the press would be creaming themselves. David Murray has just about every Scottish sport 'journalist' by the balls. They wont say anything about it until it actually happens. Link to comment Share on other sites More sharing options...
Don Juan Posted January 23, 2011 Share Posted January 23, 2011 It would be hilarious if they got forced to pay up the full amount. They are screaming poverty just now, imagine what they would be like then! Link to comment Share on other sites More sharing options...
Feeno Posted January 23, 2011 Share Posted January 23, 2011 Left to guess if this fairly informative posting is that of a crank when even a whiff of any financial trouble of ours has been front and back page spreads, stinks so it does. Link to comment Share on other sites More sharing options...
heartyhub Posted January 23, 2011 Share Posted January 23, 2011 Talk of the takeover has gone a bit quiet, could well be why. PLEASE let this be true Link to comment Share on other sites More sharing options...
ToadKiller Dog Posted January 23, 2011 Share Posted January 23, 2011 can someone who has a grasp of the leagalities of this tell me whats different about the rangers situation to that of dundees it seems to me rangers are in administration in all but name and IF that was the case 25 points deduction anyone Think its only 10pts in the SPL but i would take that . Any other club (except the other twin ) would not have been helped this way by a UK bank they would have been closed down or taken to bits long before . If i remember a good few English clubs have used the tax dodge like rangers have . If i was Rangers i would be worried . We had problems with the tax man ourselves at one point ,hopefully that has been sorted as now is not a good time to be upsetting the taxman as the state will want every penny ot can get . Link to comment Share on other sites More sharing options...
Rudolf's Mate Posted January 23, 2011 Share Posted January 23, 2011 I had no idea it was that serious. If there is direct blame to individuals then there could be severe action against them. Link to comment Share on other sites More sharing options...
shaun.lawson Posted January 23, 2011 Share Posted January 23, 2011 It has been in the news, you know: http://thescotsman.scotsman.com/glasgow/Huge-tax-bill--could.6298287.jp There are further rumours all over the net, many of which emanate from an apparently Celtic-supporting freelance journalist. But there's clearly something in this, and Rangers are in serious, serious soapy. Link to comment Share on other sites More sharing options...
Disco Dave Posted January 23, 2011 Share Posted January 23, 2011 It would be hilarious if they got forced to pay up the full amount. They are screaming poverty just now, imagine what they would be like then! I think this is exactly why they are screaming poverty. They're going to need every penny should they be forced to cough up the tax owed plus fines. Link to comment Share on other sites More sharing options...
Diadora Van Basten Posted January 23, 2011 Share Posted January 23, 2011 I am a bit surprised at this, I think there was an issue with a number of clubs paying players for image rights as opposed to paying them as employees. The saving was that the player set up a limited company and then paid corp tax at 19% as opposed to the club paying income tax at 40% (now 50%)and employer tax at 1%. From what I remember HMRC set out to take down Portsmouth and if they won they would go after all the other clubs but I think that HMRC lost so am surprised that Rangers have a problem. Anyway I hate HMRC even more than I hate Rangers so wish Rangers all the best. Link to comment Share on other sites More sharing options...
Le Chat Posted January 23, 2011 Share Posted January 23, 2011 If i remember a good few English clubs have used the tax dodge like rangers have . If i was Rangers i would be worried . Arsenal are looking at a bill of ?20M apparently. The last time there was a serious bid for Rangers (last season) and the proposed buyers entered a period of due dilligence they shat themselves and done a bolt. The whispers were that it was because of this. I half expect the same thing to happen again with this Ellis chancer. Link to comment Share on other sites More sharing options...
Chester™ Posted January 23, 2011 Share Posted January 23, 2011 It has been in the news, you know: http://thescotsman.scotsman.com/glasgow/Huge-tax-bill--could.6298287.jp There are further rumours all over the net, many of which emanate from an apparently Celtic-supporting freelance journalist. But there's clearly something in this, and Rangers are in serious, serious soapy. From what i've seen, only the Scotsman has printed anything about Rangers financial woes. They also (briefly) mentioned in another article, that anyone coming into the club, potentially owes other areas of the Murray empire something like ?108m: http://sport.scotsman.com/rangersfc/Forget-Rangers39-financial-woes-.6251738.jp The debt is apparently putting off potential buyers once they do the due diligence. There could be a lot of trouble around Ibrox soon. Link to comment Share on other sites More sharing options...
269miles Posted January 23, 2011 Share Posted January 23, 2011 can someone who has a grasp of the leagalities of this tell me whats different about the rangers situation to that of dundees it seems to me rangers are in administration in all but name and IF that was the case 25 points deduction anyone Dundee's case is quite simple : they ran out of cash and just stopped paying their tax bills. They were screwed from the outset and losythands down. I'm no expert on the case against Rangers , which is incredibly complicated : I don't think there is any 'case law' covering a similar scenario , ever in the UK, which means IF HMRC are taking a very hard line with Rangers it doesn't necessarily mean they will win their case (although that seems unlikely). This case will set the bench mark for HMRC going after other clubs - so you would have to ask why Rangers are the test case when there are supposed to have many more clubs under their microscope. In Rangers case , as I understand it (again , I aint no expert here) , HMRC are alleging a scam at Ibrox where the players had part/all of their earnings paid into a trust. This meant the players in question had their tax bill reduced as it wasn't treated as 'income'. HMRC simply argued that Rangers couldn't have players under contract to be paid a guaranteed income and then say differently by paying this income into a trust arrangement (as far as I undertand it, this would be permissible for company directors but in this case it was a scam aimed at reducing tax bills of employees). And to compound it , allegedly , it wasn't just the players who were being paid in this manner , it was rife throughout the club hierarchy. Allegedly. Link to comment Share on other sites More sharing options...
shaun.lawson Posted January 23, 2011 Share Posted January 23, 2011 Arsenal are looking at a bill of ?20M apparently. The last time there was a serious bid for Rangers (last season) and the proposed buyers entered a period of due dilligence they shat themselves and done a bolt. The whispers were that it was because of this. I half expect the same thing to happen again with this Ellis chancer. Which is particularly interesting given their use of EBTs was rumbled six years ago now. I think what they owe now is part of the HMRC investigation into the Premier League's use of image rights. Still, it's quite revealing really. Most people's idea of England's best run club in financial terms are Arsenal - who've now been caught out not once, but twice, by the taxman. Link to comment Share on other sites More sharing options...
The Comedian Posted January 23, 2011 Share Posted January 23, 2011 It has been in the news, you know: http://thescotsman.scotsman.com/glasgow/Huge-tax-bill--could.6298287.jp There are further rumours all over the net, many of which emanate from an apparently Celtic-supporting freelance journalist. But there's clearly something in this, and Rangers are in serious, serious soapy. Whatever is going on the feeling most people get is they are in more trouble than they would like the public to believe. The whole situation at Rangers stinks to high heaven. Link to comment Share on other sites More sharing options...
Rudolf's Mate Posted January 23, 2011 Share Posted January 23, 2011 Arsenal are looking at a bill of ?20M apparently. The last time there was a serious bid for Rangers (last season) and the proposed buyers entered a period of due dilligence they shat themselves and done a bolt. The whispers were that it was because of this. I half expect the same thing to happen again with this Ellis chancer. And quite rightly so, as you can't see HMRC wiping the debt simply because a new owner has purchased the club. Any purchase would also see they buyer take all debt & goodwill though not in the case of Rangers! The only way to escape such penalties/liabilities would be administration! I think if the league is beyond them in next few weeks they may just take this option Link to comment Share on other sites More sharing options...
jambo mark Posted January 23, 2011 Share Posted January 23, 2011 my mate in glasgow used to stay next door to nacho navo, and his dad and novo had the same agent i remember him telling me novo and several other players signed for rangers because they got their money paid into a trust fund, rather than in wages. re the hmrc chasing them up and the amount of money due, and if rangers will have to pay it i dont know if thats true. did arsenal not get found out a few years ago because they were setting up off shore accounts for players, which meant players and the club avoided paying tax?? Link to comment Share on other sites More sharing options...
shaun.lawson Posted January 23, 2011 Share Posted January 23, 2011 my mate in glasgow used to stay next door to nacho navo, and his dad and novo had the same agent i remember him telling me novo and several other players signed for rangers because they got their money paid into a trust fund, rather than in wages. re the hmrc chasing them up and the amount of money due, and if rangers will have to pay it i dont know if thats true. did arsenal not get found out a few years ago because they were setting up off shore accounts for players, which meant players and the club avoided paying tax?? They did. http://www.pressandjournal.co.uk/Article.aspx/1835397?UserKey= Six years ago, HMRC reached an agreement with Arsenal who paid a substantial sum in back-dated tax and is believed to have abandoned its practice of using overseas trust funds, known as Employee Benefit Trusts (EBT) to pay its players. Link to comment Share on other sites More sharing options...
fc1874 Posted January 23, 2011 Share Posted January 23, 2011 I am a bit surprised at this, I think there was an issue with a number of clubs paying players for image rights as opposed to paying them as employees. The saving was that the player set up a limited company and then paid corp tax at 19% as opposed to the club paying income tax at 40% (now 50%)and employer tax at 1%. From what I remember HMRC set out to take down Portsmouth and if they won they would go after all the other clubs but I think that HMRC lost so am surprised that Rangers have a problem. Anyway I hate HMRC even more than I hate Rangers so wish Rangers all the best. I wish that lot something, but it is definitely not all the best Link to comment Share on other sites More sharing options...
Toxteth O'Grady Posted January 23, 2011 Share Posted January 23, 2011 What a bunch of Hobos that have posted on this thread. Tic Tock Link to comment Share on other sites More sharing options...
269miles Posted January 23, 2011 Share Posted January 23, 2011 my mate in glasgow used to stay next door to nacho navo, and his dad and novo had the same agent i remember him telling me novo and several other players signed for rangers because they got their money paid into a trust fund, rather than in wages. re the hmrc chasing them up and the amount of money due, and if rangers will have to pay it i dont know if thats true. did arsenal not get found out a few years ago because they were setting up off shore accounts for players, which meant players and the club avoided paying tax?? Yes , they will. HMRC have no legal powers to recover the tax from indiviuduals who will have long departed the UK. So , if they lose, Rangers will have to pay the sum owed in lost tax , plus interest lost, plus a penalty on top. Scary thoughts that make our debts look puny in comparison. Link to comment Share on other sites More sharing options...
Le Chat Posted January 23, 2011 Share Posted January 23, 2011 What a fecking shame eh ? Link to comment Share on other sites More sharing options...
fc1874 Posted January 23, 2011 Share Posted January 23, 2011 What a bunch of Hobos that have posted on this thread. Tic Tock Where? Link to comment Share on other sites More sharing options...
shaun.lawson Posted January 23, 2011 Share Posted January 23, 2011 What a fecking shame eh ? If they lose the case, they are quite comprehensively screwed. :pleasing: Link to comment Share on other sites More sharing options...
Paolo Posted January 23, 2011 Share Posted January 23, 2011 It is not often I would cheer on the tax man but this is one of those rare occasions. Link to comment Share on other sites More sharing options...
Dusk_Till_Dawn Posted January 23, 2011 Share Posted January 23, 2011 I've said this before on here, but it's worth posting again: A while back, HMRC took the stance that they were going to oppose every attempt by football clubs to avoid paying tax in full - primarily in respect of CVAs proposed by clubs in administration. It was a major factor in Leeds United's attempt to force through a CVA in 2007. HMRC basically decided that they were going to challenge it as far as possible in the courts after being offered 1% (and subsequently 8%) of the ?7.7million they were owed. In short, too many clubs have taken the piss out of HMRC and football hasn't helped by allowing situations where clubs, players and associations get every penny they're owed while the taxman waits in line with all the other unsecured creditors. A lot of clubs operate in a way which would see the average business shut down, and they're not going to get any sympathy from HMRC. Quite fecking right as well Link to comment Share on other sites More sharing options...
JamboAl Posted January 23, 2011 Share Posted January 23, 2011 can someone who has a grasp of the leagalities of this tell me whats different about the rangers situation to that of dundees it seems to me rangers are in administration in all but name and IF that was the case 25 points deduction anyone It seems that any debt to HMRC has not been quantified, established and agreed so HMRC will not be able to pursue RFC with any conviction - at present it just seems to be a prima facie albeit a strong one. Even if they were forced to pay ?60m they need not have to go into administration although it would take rich (and stupid?) benefactors to avoid this before RFC would be liable to a points deduction. Then of course the OF rule book could be amended before that happened. Link to comment Share on other sites More sharing options...
VeraNT Posted January 23, 2011 Share Posted January 23, 2011 When this kind of stuff goes on in France and Italy - its point deduction right away. Link to comment Share on other sites More sharing options...
FromDownSouth Posted January 23, 2011 Share Posted January 23, 2011 It would be hilarious if they got forced to pay up the full amount. They are screaming poverty just now, imagine what they would be like then! If my understanding is correct, they will have to pay the full amount. Usually a club would try to pay a fraction of their debt (i.e. pence in the pound) to their creditors if they are really in dire straits, in what is termed a Creditors Voluntary Arrangement (CVA). I believe, but I am not certain, that the HMRC will not accept a CVA if a firm has been avoiding paying tax. My guess is they will demand the figure in full. Personally, I'd hate to see any club go bust, even Celtic or Hibs. Link to comment Share on other sites More sharing options...
WorldChampions1902 Posted January 23, 2011 Share Posted January 23, 2011 It is not often I would cheer on the tax man but this is one of those rare occasions. Very interesting. I was under the misapprehension that their potential HMRC debt was around ?25m and I also believed that the Taxman could add up to 100% of any debt as penalties/interest. If indeed the liabilty is ?36m then this could total ?72m at the end of the day. This unresolved liability is the reason why at least one take-over bid was aborted as the potential new owner wanted indemnity against this as yet unresolved debt. The position of the 'sticky buns' is errrrrrrr very sticky indeed and they are not the only ones to have engaged in this fiscal skull-duggery. Makes our own clubs post-Debt For Equity Swap liabilties of around ?26m look like chickenfeed. Link to comment Share on other sites More sharing options...
Rudolf's Mate Posted January 23, 2011 Share Posted January 23, 2011 HMRC have no legal powers to recover the tax from indiviuduals who will have long departed the UK. Correct however if there is a case to answer as an individual then the information could be handed over to the rozzers Link to comment Share on other sites More sharing options...
davemclaren Posted January 23, 2011 Share Posted January 23, 2011 Hopefully the Rangers fans will agree to boycott HMRC for this unreasonable action by not paying their taxes. Link to comment Share on other sites More sharing options...
shaun.lawson Posted January 23, 2011 Share Posted January 23, 2011 Hopefully the Rangers fans will agree to boycott HMRC for this unreasonable action by not paying their taxes. Link to comment Share on other sites More sharing options...
Victorian Posted January 23, 2011 Share Posted January 23, 2011 Hopefully the Rangers fans will agree to boycott HMRC for this unreasonable action by not paying their taxes. thousands of SA returns being sent back with "we deserve better" scrawled on them. Link to comment Share on other sites More sharing options...
Le Chat Posted January 23, 2011 Share Posted January 23, 2011 thousands of SA returns being sent back with "we deserve better" scrawled on them. Link to comment Share on other sites More sharing options...
The Mighty Thor Posted January 23, 2011 Share Posted January 23, 2011 Which is particularly interesting given their use of EBTs was rumbled six years ago now. I think what they owe now is part of the HMRC investigation into the Premier League's use of image rights. Still, it's quite revealing really. Most people's idea of England's best run club in financial terms are Arsenal - who've now been caught out not once, but twice, by the taxman. Things were so much simpler in George's day...... Link to comment Share on other sites More sharing options...
Footballfirst Posted January 23, 2011 Share Posted January 23, 2011 There are some figures to be had from Rangers annual reports about the amount of money put into these EBTs in the last few years. 2000 - ?0 2001 - ?1M 2002 - ?5M 2003 - ?7M 2004 - ?7.2M 2005 - ?7.2M 2006 - ?9.2M 2007 - ?5M 2008 - ?2.3M 2009 - ?2.4M 2010 - ?1.4M Here is an interesting comment from FollowFollow.com I found about the Rangers accounts from 2003. But we are not out of the woods yet, as Champions League income is not guaranteed in future and nor are the player sales - hopefully. The thing that I find strange is that at a time when the club is trying to get costs down "contributions to employee trusts" continues to rise. This has risen from ?0 in 2000 to ?1m in 2001, ?5m in 2002 and now almost ?7m in 2003. This sounds like making contributions to the pension funds of already rich footballers - if not we need to be told what it is and why it's rising. Get rid of those contributions, and we're half way to reducing the deficit even without player sales or serious European income. Now a note in the accounts says that two trusts exist, the Rangers Employee Benefit Trust and the Murray Group Management Remuneration Trust. The first of these looks obvious as to what it is, but surely the second trust isn't to reward employees of Murray companies who do a job for Rangers? In the 2010 Annual Report, Rangers state the following: On the basis of expert tax advice, the Club is defending a query raised by HMRC into the operation of the Murray Group Management Limited Remuneration Trust, established to provide incentives to certain employees and other service providers. This is part of an ongoing tax enquiry scheduled to be heard by a tax tribunal before the end of the year. I would expect that HMRC will be seeking 40% tax plus employer and employee National Insurance contributions on the above plus interest plus the "last minute" penalty charge. Link to comment Share on other sites More sharing options...
The Old Tolbooth Posted January 23, 2011 Share Posted January 23, 2011 Wow! this is massive! HMRC are not to be messed with and there is no way that RFC will get away with paying a paltry amount like ?10M, when the starting point for bargaining is a massive ?36M Oh happy days! Link to comment Share on other sites More sharing options...
colinmaroon Posted January 23, 2011 Share Posted January 23, 2011 As said earlier, this is a test case for HMRC; no guarantee they'll win it! I think they're going after Rangers because it's a big debt, including penalties, and they seem to have a clear case of Rangers lying to them in statements and in court. Even if Rangers eventually can wriggle out of it, surely no interested parties are going to buy the club until the outcome is clear? Buyers could be waiting, because obviously, if they're declared insolvent, I believe the club will sell at a much cheaper level. David Murray has left a wonderful legacy. The man who "saved" Rangers and gave them a few years of relative "glory" has completely screwed up! What worries me is, if HMRC wins they're could be good few other clubs in deep trouble. Perhaps we'll end up with a 10 team SPL, because there are only 10 teams (or so) who haven't been relegated for going bust!!! Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted January 23, 2011 Share Posted January 23, 2011 Interested in the case law comment above. Do HMRC have to establish case law in England and Scotland? If so, they are even more screwed as there is no way the nice taxman will back down and cut a deal. Link to comment Share on other sites More sharing options...
zdrastvway Posted January 23, 2011 Share Posted January 23, 2011 I don't know anything about the right mess that Rangers find themselves in, but the tax analysis referred to by the OP is remarkably well-informed. The fact that Andrew Thornhill QC is handling the matter suggests that Rangers FC are raking it very seriously. Andrew Thornhill is THE Man when it comes to tax and EBTs. I wouldn't put any money on HMRC being minded to reach a financial settlement here. They will want to establish the principles, through the Tribunals and Courts if necessary, but once that has been done it will simply be a matter of getting the calculator out to compute the tax that is due, add in the interest on tax paid late and impose the appropriate penalty. The answer looks like it's going to be a painful one. Link to comment Share on other sites More sharing options...
jumpship Posted January 23, 2011 Share Posted January 23, 2011 I don't know anything about the right mess that Rangers find themselves in, but the tax analysis referred to by the OP is remarkably well-informed. The fact that Andrew Thornhill QC is handling the matter suggests that Rangers FC are raking it very seriously. Andrew Thornhill is THE Man when it comes to tax and EBTs. I wouldn't put any money on HMRC being minded to reach a financial settlement here. They will want to establish the principles, through the Tribunals and Courts if necessary, but once that has been done it will simply be a matter of getting the calculator out to compute the tax that is due, add in the interest on tax paid late and impose the appropriate penalty. The answer looks like it's going to be a painful one. So when do Rangers go bust? What's the time line? Sooner the better... Would HMRC help Rangers out by waiting till the end of the season? Collecting moneys from league finish position and end of European campaign? Link to comment Share on other sites More sharing options...
zdrastvway Posted January 23, 2011 Share Posted January 23, 2011 This could take a while to conclude. No doubt it will have been rumbling on for some time already and will take months or potentially years to come to an end. Rest assured HMRC will fight it all the way. So while pushing Rangers over the edge before the end of the season must be very unlikely, the prospect of a new owner appearing on the scene before then with cash to splash must be even less likely. Link to comment Share on other sites More sharing options...
rossthejambo Posted January 23, 2011 Share Posted January 23, 2011 *sigh* I've been saying this was on the cards for MONTHS people! People really need to listen to me more often Link to comment Share on other sites More sharing options...
Footballfirst Posted January 23, 2011 Share Posted January 23, 2011 Arsenal setled a similar claim out of court in 2005 http://www.timesonline.co.uk/tol/news/uk/article576436.ece Link to comment Share on other sites More sharing options...
WorldChampions1902 Posted January 23, 2011 Share Posted January 23, 2011 I don't know anything about the right mess that Rangers find themselves in, but the tax analysis referred to by the OP is remarkably well-informed. The fact that Andrew Thornhill QC is handling the matter suggests that Rangers FC are raking it very seriously. Andrew Thornhill is THE Man when it comes to tax and EBTs. I wouldn't put any money on HMRC being minded to reach a financial settlement here. They will want to establish the principles, through the Tribunals and Courts if necessary, but once that has been done it will simply be a matter of getting the calculator out to compute the tax that is due, add in the interest on tax paid late and impose the appropriate penalty. The answer looks like it's going to be a painful one. The bit in bold type above is particularly salient. HMRC are under strict orders from HM Government to extract every single penny from these types of cases given the state of the country's finances. So whilst a compromise settlement might have been acceptable pre-Banking crisis, I do not believe that this is now the case. Lovely Jubbly. Link to comment Share on other sites More sharing options...
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