Three years from now, those who benefitted from ‘loans’ when playing for Rangers will receive tax demands from HMRC. They will pay 40% tax and the prevailing rate of national insurance. Those who were in the boardroom during the disguised remuneration years will also be receiving a tax demand. If the recipients had been smart they would have set up an account to host their tax liabilities and earned interest on this sum. Today’s article in The Daily Radar is heavy on photographs and light on detail. It calculates liability at 40% across the board and in doing so ignores National Insurance contributions.
Irrespective of the BDO petition to the Supreme Court which will be heard in a matter of months, George Osbourne is planning to fast-track legislation to prevent new tax avoidance schemes being created. The Exchequer makes it clear that individuals will be hunted for past liabilities:
“The Government are also committed to ensuring that those who have used these schemes in the past aren’t allowed to get away with it. To meet this objective, the Government will introduce legislation to put beyond doubt that all loans or debts from a disguised remuneration scheme will be taxed as earnings if they haven’t already been fully taxed or repaid on or before April 5, 2019.”
A Finance Bill will be introduced this year to facilitate The Exchequer’s plans. There is no need for specific legislation in Scotland but Trumpton love nothing more than giving the impression that they are ‘vital’ so we should assume that they will waste more money in their attempts to enhance their self-importance and to increase their burgeoning deficit.
Barry Ferguson will be facing a minimum bill of £1.3m assuming no penalties and interest is applied. If he was well-advised he would liquidate his assets now and settle immediately to preclude three more years of interest. The chances are that he has frittered it away on conspicuous consumption and that he will be declared bankrupt. Alex McLeish might well escape this fate that is coming down the pike. Aberdonians are renowned for their parsimony. Mr McLeish may have acquired a sense of thrift by osmosis. I’m confident that he will be able to raise £884,000. He would be prudent to approach HMRC without delay.
Rangers stars and senior staff during the club’s controversial EBT years between 2001 and 2010 raked in £47.65million from the scheme. When National Insurance is added, and a consideration for the DOS/VSS operation is included, the total bill is north of £72m
The schemes introduced by David Murray were brazen tax dodges.
HMRC’s Big Tax Case pursuits took on several companies within Murray International Holdings. Although many EBT beneficiaries had received “side letters” agreeing to cover any liabilities if the taxman came knocking, moves were made to wind up four of the firms last year ,eliminating this safety net.
The Daily Radar article states that:
“The case triggered calls for Rangers to be stripped of honours acquired during the EBT years, amid accusations of financial doping.Rangers won the Scottish Premier League on five occasions, the Scottish Cup four times and had six successes in the Scottish League Cup.”
A full list of the honours won from 1999-2011 can be found here: http://spfl.co.uk/clubs/rangers/
The new legislation is targeted to claw back £24billion by 2021.
However, in the metaphysical world of Scottish Football, the laws of the land don’t apply. A former SFA president will be facing a bill of £49,400, but even this won’t change Stewart Regan’s mind. They have the LNS report and they cling to it as if their life depended on it. Doncaster, Regan and Longmuir agreed that fifteen titles should be withdrawn. They signed up to two draft 5 Way agreement documents, one for Rangers in the SPL, one the old First Division. They threatened teams with a SPL II with Rangers one season from elevation to the top tier. Every chairman knew that these fifteen titles were unsound, but the sugar coating was not sufficient to tempt them to pervert the rules of the game. Regan, Doncaster and Longmuir were called corrupt in public. They remain corrupt.
The bent players and officers will go to the wall. The unsound titles will reside in the Rangers museum, as soon as RF CIC pay for its construction.
The players won’t get away with it, but Regan and Doncaster did and they are laughing all the way to the bank as they anticipate a 10% hike in their combined revenues for next season.