25 Feb 2014

Rangers: HMRC states its case

It is never easy getting HMRC to state their case. A lot of folk quite reasonably wish to know why Hector the Taxman is expending considerable sums of our dosh to pursue Rangers FC over alleged mass tax avoidance of disputed legality.


I had hoped to get their explanation for you yesterday on the day the upper tier tax tribunal opened in Edinburgh but that proved impossible.

However, it pays to be persistent when pursuing HMRC and just when I was wondering if they were unsure why they are pursuing the case, the following arrived:

“HMRC has increasingly seen EBTs (employment benefit trusts) being used as a way of avoiding pay as you earn income tax (PAYE) and national insurance (NICs).

“Where we believe a company has used an EBT as a way of trying to avoid obligations to account for PAYE tax and NICs, we challenge the arrangement and seek to recover the unpaid tax and national insurance.

“We were disappointed to have lost the first tier tribunal stage of the court process and are currently appealing that tribunal decision.  The first tier decision was not unanimous and the diligence of HMRC investigators was acknowledged by the whole tribunal.

“We are committed to tackling avoidance and it is right that HMRC challenge the type of avoidance seen in this case to prevent the loss of substantial amounts of tax and national insurance.”

There you have it. I commend the coverage of the tribunal by the Scottish Football Monitor and trust they have the stamina to stay the course.

Rangers court battle: what next for Ibrox?

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