boss 1,941 Posted November 19, 2012 Share Posted November 19, 2012 SPL in £100m tax “dodge”Some extracts from the accounts of The Scottish Premier League Limited:Income - £231millionCorporation tax paid - £nilLast week Starbucks, Amazon and Google were roasted live by the Public Accounts Committee for their “immoral” tax avoidance schemes which enable these companies to trade in the UK but pay virtually no corporation tax. The PAC’s view was that these companies were “at it” and HMRC should investigate and clamp down hard.Which brings us to the SPL. Since 1999 the SPL has declared income of £231,563,000. The amounts then paid out of this income to SPL clubs have only been disclosed in the accounts since 2010, but a reasonable estimate of such amounts based on my analysis of the accounts is £188,076,000. That’s £188million received by the SPL clubs and not one penny paid in corporation tax by the SPL.How can that be so?The normal situation for a company is: it makes a profit, it pays corporation tax on that profit, then anything that is left can be paid as a dividend to the shareholders. Anyone that owns shares in a company (say, BT) will know that when you receive a dividend, you also receive a voucher that shows tax has already been paid on that dividend.The SPL does not treat these payments to the clubs (who are its shareholders) as dividends. Instead, they treat these payments as expenses and claim tax relief on these payments. So the SPL’s accounts end up showing a loss every year and no corporation tax to pay.Based on the corporation tax rates throughout the period, the corporation tax that would otherwise have been due on £188million would have been in excess of £55million. If the SPL was subsequently found to have wrongly “dodged” corporation tax, you can add interest and penalties to that and the final bill would be more than £100million.That is one hell of a lot of schools, hospitals, nurses and teachers. The hypocrisy of the SPL moralising over Rangers’ tax situation is breathtaking.On receipt of the £188million, the clubs themselves have paid virtually no corporation tax, perhaps none at all. Most clubs either make losses, or have previously made losses that they can use against current profits, so they themselves generally have no corporation tax to pay.All it would take would be for HMRC to revisit the SPL’s tax treatment (sound familiar?), change their view on the application of tax law (sound familiar?) and decide that tax should have been paid after all (sound familiar?). There but for the grace of HMRC go the SPL.Of course, we would then have the hollow excuses from the SPL: “took professional advice”, “acted within the law at the time”, “HMRC changed the goalposts”, all of which again sounds pretty damn familiar.There would be a delicious irony if such a fate befell the SPL, upon whose financial collapse HMRC sought to recover such tax from the clubs who were willing participants in the structure. As Pyramus might say: “Now die, die, die, die, die”.This mess is best summed up by the PAC chairman, Margaret Hodge when referring to the serial tax "dodging" companies: “We are not accusing you of being illegal, we are accusing you of being immoral”. Perhaps she should call Mr Doncaster to appear before the committee for a roasting. Quote Link to post Share on other sites More sharing options...
77amurai 258 Posted November 19, 2012 Share Posted November 19, 2012 great find! That's atrocious. Quote Link to post Share on other sites More sharing options...
Scodamcdoda 38 Posted November 19, 2012 Share Posted November 19, 2012 Hmmmm the irony in that is immense, I will personally be emailing this out all day to various outlets,hmrc,etc etcThe wright stuff on c5 everything and anything,Get into these corrupt bastards and let's see the cabal falling !!!!!! Quote Link to post Share on other sites More sharing options...
mabawsa 888 Posted November 19, 2012 Share Posted November 19, 2012 SPL in £100m tax “dodge”This will get buried...no matter how...or send it to Alex Thommo. See if he has the desire and balls to question it or chooses to ignore it.Get that SPL Tax Dodge blog up and running LOL Quote Link to post Share on other sites More sharing options...
JCDBigBear 10,832 Posted November 19, 2012 Share Posted November 19, 2012 SPL in £100m tax “dodge”Good article. Just one comment that our EBT scheme didn't commence until 2001. Quote Link to post Share on other sites More sharing options...
boss 1,941 Posted November 19, 2012 Author Share Posted November 19, 2012 Good article. Just one comment that our EBT scheme didn't commence until 2001.The first employee benefit scheme (the small tax case) started in 1999 iirc. Quote Link to post Share on other sites More sharing options...
AlBear. 8,499 Posted November 19, 2012 Share Posted November 19, 2012 Why am I just learning this now? Does Sporting Integrity count in this instance?No confidence in the spl it should be disbanded or reformed top to bottom. Quote Link to post Share on other sites More sharing options...
bluenose1975 1,287 Posted November 19, 2012 Share Posted November 19, 2012 they try and pass the spl off as a "clearing house", maybe this is the way they get around it but who pays dungcasters wage? great find bossman, will be interested to see if the mhedia pick up on this, not holding my breathe at this hypocrisy.............its astounding!!! Quote Link to post Share on other sites More sharing options...
OlegKuznetsov 10,816 Posted November 19, 2012 Share Posted November 19, 2012 Excellent stuff once again, boss.I think we should all take a moment to thank you. Cheers, dude. Quote Link to post Share on other sites More sharing options...
JCDBigBear 10,832 Posted November 19, 2012 Share Posted November 19, 2012 The first employee benefit scheme (the small tax case) started in 1999 iirc.The small tax case only involved 2 players, de Boer and Flo who only signed in 2000. That was an entirely different issue from the EBT case. Quote Link to post Share on other sites More sharing options...
blueoutthedome 87 Posted November 19, 2012 Share Posted November 19, 2012 Lets hunt these bastards down. Quote Link to post Share on other sites More sharing options...
boss 1,941 Posted November 19, 2012 Author Share Posted November 19, 2012 Excellent stuff once again, boss.I think we should all take a moment to thank you.Cheers, dude.The only thanks I want is for people to distribute this info as much as possible. Forums, media, the club, HMRC, etc. I don't want the glory - I merely want the SPL to die. Quote Link to post Share on other sites More sharing options...
DAVIE8CH 296 Posted November 19, 2012 Share Posted November 19, 2012 this truly is worse than match fixing Quote Link to post Share on other sites More sharing options...
gogzy 31,195 Posted November 19, 2012 Share Posted November 19, 2012 this truly is worse than match fixingno it isnt IMO.Tax avoidance os nowhere near as bad as match fixing.Only taigs wanting to see Rangers dead and burried tow that party line mate. Quote Link to post Share on other sites More sharing options...
The Godfather 72,400 Posted November 19, 2012 Share Posted November 19, 2012 And die it will Boss. Quote Link to post Share on other sites More sharing options...
LeeWallaceRFC 3,920 Posted November 19, 2012 Share Posted November 19, 2012 Are they likely to be done for it? Quote Link to post Share on other sites More sharing options...
BF2 winston 123 Posted November 19, 2012 Share Posted November 19, 2012 Sporting integrity. I hear you say???????????????????????????????? Quote Link to post Share on other sites More sharing options...
DAVIE8CH 296 Posted November 19, 2012 Share Posted November 19, 2012 gogsy it was tounge in cheek stuff mate Quote Link to post Share on other sites More sharing options...
77amurai 258 Posted November 19, 2012 Share Posted November 19, 2012 no it isnt IMO.Tax avoidance os nowhere near as bad as match fixing.Only taigs wanting to see Rangers dead and burried tow that party line mate.Definitely nowhere near as bad as match fixing, but the whole tax avoidance stuff needs to go.I don't think it's "morally reprehensible" particularly given that it's within the law to do so, but I can't for the life of me understand why any government would keep these loopholes open.It's not the onus of the company to not tax avoid, it's the government's to make it unavailable as an option. Quote Link to post Share on other sites More sharing options...
Right_To_Censor 1,951 Posted November 19, 2012 Share Posted November 19, 2012 if they get hit with a big fine or bill then it's bye bye splol Quote Link to post Share on other sites More sharing options...
Straight-Edge-Loyal 6,696 Posted November 19, 2012 Share Posted November 19, 2012 The only thanks I want is for people to distribute this info as much as possible. Forums, media, the club, HMRC, etc. I don't want the glory - I merely want the SPL to die.No objection to me shareing it on Facebook then mate? Quote Link to post Share on other sites More sharing options...
boss 1,941 Posted November 19, 2012 Author Share Posted November 19, 2012 No objection to me shareing it on Facebook then mate?None whatsoever. Quote Link to post Share on other sites More sharing options...
Gregor Stevens Fan Club 42 Posted November 19, 2012 Share Posted November 19, 2012 SPL in £100m tax “dodge”The SPL does not treat these payments to the clubs (who are its shareholders) as dividends. Instead, they treat these payments as expenses and claim tax relief on these payments. So the SPL’s accounts end up showing a loss every year and no corporation tax to pay.How are the payments made to member clubs in all the other leagues in Britain treated ?? Quote Link to post Share on other sites More sharing options...
bluenosebrad 452 Posted November 19, 2012 Share Posted November 19, 2012 How are the payments made to member clubs in all the other leagues in Britain treated ??Was thinking the same what do other leagues do ie SFL or EPL Quote Link to post Share on other sites More sharing options...
77amurai 258 Posted November 19, 2012 Share Posted November 19, 2012 Was thinking the same what do other leagues do ie SFL or EPLIf I was guessing I'd say it happens the same way, but I'd be delighted to be wrong. Quote Link to post Share on other sites More sharing options...
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