Rangers Win “Big Tax Case” Against HMRC

The old Rangers Football Club, currently in liquidation, has won an appeal against HMRC over its use of Employee Benefit Trusts (EBT’s).

Between 20001 and 2010, the club made payments to players and staff totalling £47.65 million to players and staff in the form of tax free loans.

HMRC challenged the scheme, saying that they broke UK tax rules.

Rangers argued this in a First Tier Tax Tribunal, with the Tribunal panel agreeing that the payments were loans that can be repaid.

HMRC though said it was considering appealing the decision.

Murray International Holdings, who were majority shareholders at the club during the period the EBT’s were used, welcomed the decision.

A spokesman said:” We are pleased with the judgement which leaves minimal tax liability and overwhelmingly supports the views collectively and consistently held by our advisers, legal counsel and MIH itself.

“This has been an exceptionally long, difficult and expensive process involving not just the tax tribunal but also significant efforts to resolve the matter with senior HMRC officials on a commercially sensible basis for all parties.”

A HMRC spokesman responded, saying: We are disappointed that we have lost this stage of the court process and we are considering an appeal.
“The decision was not unanimous and the diligence of HMRC investigators was acknowledged by the whole tribunal.

“HMRC is committed to tackling avoidance and it is right that we challenge the type of avoidance seen in this case.”