Football boss Harry Redknapp cleared of tax dodge

Jurors accepted Tottenham Hotspurs boss Harry Redknapp’s angry denials that he avoided tax on payments found in a Monaco account during his time as Portsmouth manager.

His acquittal alongside co-defendant Milan Mandaric blows the final whistle on a five-year £8m police investigation which failed to bring about a single conviction. Redknapp and Mandaric hugged as the jury cleared them of all counts.

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Speaking outside Southwark Crown Court, a relieved Mr Redknapp said he had been through a five-year long “nightmare”, adding that the case “should never have come to court”.

He also thanked the “special” Spurs fans who sang his name during his team’s recent match against Wigan.

Earlier, Mr Mandaric said the prosecution had been a “horrible dream” but said he had always believed in British justice.

Mr Redknapp and Mr Mandaric, former Portsmouth chairman, always denied two counts of cheating the public revenue following allegations Redknapp took thousands of pounds in bungs while he was Portsmouth manager.

Inland Revenue do have access to information about money offshore and they are willing to pursue people. John Whiting

During the trial, Mr Redknapp and Mr Mandaric were described as an “odd couple” and Mr Mandaric said his relationship with Mr Redknapp was a “love-hate” affair. Mr Redknapp said he was “disastrous” with business and “the most disorganised man in the world” who wrote “like a two-year-old”.

The trial centred around £189,000 deposited in a Monaco bank account named “Rosie 47” after Mr Redknapp’s dog. Mr Mandaric said “not in a million years” would he have paid the money there to avoid taxes.

He said it was money “to develop [Mr Redknapp’s] portfolio” and not, as it was alleged, reward following the sale of Peter Crouch to Aston Villa in 2002.

Mr Redknapp added: “I have always paid my taxes, I’ve always gone to the best available people… I have always paid too much tax rather than not enough.”

‘Focus people’s minds’

Spokesman for the Inland Revenue, Chris Martin, said they had no regrets after pursuing the case.

He said: “It was vitally important that the facts were put before a jury. We accept the verdict.”

Tax policy director John Whiting, from the Chartered Institute of Taxation, told Channel 4 News the case should “focus people’s minds” and that high profile figures with “tax problems” are being increasingly pursued.

“Inland Revenue do have access to a lot of information about money offshore, and they are willing to pursue people,” Whiting said.

“There’s certainly a bit of a myth that if you have a highly-paid accountant or tax advisor you can suddenly magic your way out of some big tax bill,” he added.

“If there’s a bonus you’ve received, that in principle is taxable. The mere fact that it’s paid into an offshore account doesn’t take it outside the tax net if you’re domiciled here.”

During the trial, Redknapp admitted lying to News of the World reporter Rob Beasley about the account being a bonus for the £3m profit made by the club for the sale of England striker Peter Crouch. But Redknapp and Mandaric said in court that the money was an investment not liable to tax.

In a taped phone call Redknapp had previously told this News of the World journalist Rob Beasley the money was a bonus.

‘From another era’

Steve Claridge, who played under Mr Redknapp at Bournemouth, told Channel 4 News that Mr Redknapp was “from another era”.

“I would put him into the old school category. I wouldn’t say he was old-fashioned, but old school in the way that he manages – which is very much about getting the right result, standing his ground with regard with what he needs.”

Mr Mandaric and former Portsmouth chief executive Peter Storrie were also cleared of £600,000 tax dodge claims at a previous trial, it can be reported for the first time.