Some analysis on tax issue

[gandhisflip 5]

I received an email this morning from a tax specialist regards Rangers "Employee Trust" tax investigation. Some of our clients run their companies through these EBT's hence the clarifying email from today.......

I am writing to everyone in Scotland collectively as it is more likely that you will be contacted by clients or other business contacts given the high profile nature of the business above

You'll see an example of the reporting in the attached link

http://www.eveningtimes.co.uk/news/editor-s-picks-ignore/taxman-targets-rangers-1.1023503

A few people have already written to me regarding this regarding the background and also to ascertain any implications for our clients.

First and foremost, that is a splendid example of classic misreporting in the press. In fairness, I think that Rangers have actually handled this quite well. As I understand it, there are no court proceedings at this stage and the circumstances are quite different to that of Portsmouth and other clubs where HMRC has taken action to recover unpaid debts.

Rangers have undertaken remuneration trusts through Baxendale Walker (the Rangers chairman David Murray apparently is a client). Obviously, we have views regarding Baxendale Walker which are best not published.

Nonetheless, I think that the issue has been blown out of all proportion. HMRC will have enquired regarding the structure. In all probability it is not an Investigation - in all probability, Rangers will have remitted the tax and national insurance on normal salary payments and arrears will be minimal, if any.

In relation to the remuneration trusts, I would guess that HMRC will have issued protective regulation 80 assessment (before the expiry of six years). As you know, this was done on all Premier EBT at December 2009. This is merely a protective measure by HMRC.

In all probability, Rangers will have undertaken the Baxendale Walker equivalent of the miniEBT. No Corporation tax deduction will have been claimed for obvious reasons.

Therefore, it is absolutely preposterous for the press to speculate that millions will be payable in terms of tax. Whilst we would not necessarily support Baxendale Walker or their approach, I would be astonished if HMRC was successful. To do so, they basically have to undo Dextra and Sempra. Clearly, we do not have access to the structure or the implementation process applied. If there is any weakness, that's where it will lie. However, the public pronouncements by Rangers have been firm - in fact, you could say that their approach is one of "no surrender!"

However, informed legal opinion is that any HMRC challenge to undo the above cases, is likely to be unsuccessful.

Another practical issue which arises from this is that David Murray is in the throes of selling the interest in the club. Any purchaser would reasonably expect the vendor to indemnify them for any future liabilities. We have had quite a few examples of this and the vendor agrees to indemnify the purchaser should any liabilities arise.

I hope that this is helpful to you.

Best wishes

[Poetry_In_Blue 1,043]

In basic English, what a lot of people had been saying on here, and in a way Rangers/SDM.

[GeneralCartmanLee 313]

Cheers, interesting stuff....well kind of interesting...

[Adoniram 1,919]

Cheers, interesting stuff....well kind of interesting...

Very interesting indeed.

Mind if i use this elsewhere chaps?

[Ultra 0]

Good news, hopefully this won't hamper ellis's takeover from going through.