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Rangers win Employee Benefit Trusts tax case

Following on from all the hype and the (consequent?) liquidation it is somewhat surprising to learn that the first-tier tribunal has ruled that payments made to players and staff at Rangers Football Club under its Employee Benefit Trust tax scheme were not liable to PAYE.

Apparently the scheme in place between 2001 and 2010 was used to pay £47.65m to players and staff.  The company argued that the payments were loans rather than actual earnings and not subject to tax.

The ruling said: “The majority view reflects the argument that the controversial monies received by the employees were not paid to them as their absolute entitlement.  The legal effect of the trust/loan structure is sufficient to preclude this.  Therefore the payments are loans, not earnings, and so are recoverable from the employee or his estate.”

It is reported that HMRC is now considering an appeal.

I have to say, if I were a Ranger’s fan the irony of the win after the liquidation may be lost on me.



Date: 7th December, 2012
Author: Cathy Corns


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