Several former Rangers (IL) stars are facing massive tax bills after missing a deadline with HMRC to repay money owed on their disguised remuneration.
For over a decade players, coaches and officials at the club eagerly accepted a standard contract which was registered with the authorities while having massive payments, often agreed by side letters, paid into offshore trusts.
The so called trusts were apparently tax free but in July 2017 the Supreme Court ruled that they were disguised remuneration and liable to income tax and national insurance.
HMRC has been involved in a massive exercise to reclaim the money due and have been keen to come to arrangements with those involved however not everyone has been able to reach agreement on their liabilities and schedules to make repayment.
The Daily Record reports:
Former Rangers stars face huge bills this year after failing to strike a deal with HMRC over a controversial tax avoidance scheme.
It’s understood several of those who benefited from the Ibrox side’s Employee Benefit Trust (EBT) will be hit with tax demands – with some potentially owing millions.
It’s because they didn’t agree a repayment plan with HMRC by a deadline of April 5.
HMRC rules on so-called “disguised remuneration schemes” say the unpaid money will now be lumped into one income tax bill which is due at the end of the tax year. It’s not known which former Rangers figures have yet to settle with the taxman.
A source connected with the EBT investigation said: “Some former players were quick to agree a deal with the taxman who has been very fair in sorting out repayment plans.
“But others involved in the EBT scheme believe it’s the club who are to blame for this and are reluctant to pay the tax.”
Anyone who doesn’t reach agreement will be hit with a demand for income tax, national insurance, penalties and interest. Should they take their side letters to the club they are likely to discover the awkward truth that their club is in liquidation and not related to the current side playing from Ibrox .
Football clubs are obliged to register details of all payments with the SFA and SPL otherwise players are ineligible to play.
In matches over the last two seasons Clyde and Albion Rovers have been hit with 3-0 defeats for fielding ineligible players, Hearts had a two point deduction for using an ineligible player in the Betfred Cup.
Despite the industrial scale of using ineligible players the SPL hit the old club with a fine of £250,000 for fielding ineligible players with no points deductions.
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— Joe McHugh (@videocelts) April 15, 2019