Home Business News HMRC wins Rangers 'big tax case' ruling

HMRC wins Rangers 'big tax case' ruling

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The Supreme Court has ruled in favour of HM Revenue and Customs (HMRC) in its fight with Rangers over the club’s use of Employee Benefit Trusts (EBTs). More than £47m was paid to players, managers and directors between 2001 and 2010 in tax-free loans.However, HMRC argued the payments were earnings and should be taxable.The court’s decision is not expected to have any material or financial impact on Rangers now as the club is owned by a different company.Who were the EBT beneficiaries?Rangers’ use of EBTs and the subsequent appeals by HMRC became known as the “big tax case”.Two tribunals in 2012 and 2014 had previously found in Rangers’ favour, but after an appeal in 2015, the Court of Session found in favour of HMRC.This appeal was upheld in a decision issued by Lord Carloway, sitting with Lord Menzies and Lord Drummond Young at the Court of Session in Edinburgh. Similar schemesLiquidators BDO were then allowed to appeal to the Supreme Court as the ruling has implications for future cases.The Supreme Court in London has now ruled in favour of HMRC.This means it can issue “follower notices”, which would demand payment from companies who ran similar schemes. A number of football clubs in England fall into this category.The decision is in relation to Murray Group companies, including the liquidated company RFC 2012, and does not affect the current owners at Ibrox.
Source: BBC