Rangers loan deals and the taxman - it’s payback time!

[oldcolner]

Trident Trust who ran the scheme have advised players and others who were given loans that were intended to save tax, that they need to seek advice as HMRC want tax to be paid on them. These are substantial with Barry Ferguson loaned £2.5m.
If players and other loaners don’t contact HMRC by the end of September, the terms may not be as favourable.

Last year the Supreme Court upheld a Court of Session ruling that £47m paid to Rangers employees between 2001-2010 was liable for tax.
Now beneficiaries of the Employee Benefit Trusts (EBTs), many of whom were led to believe these were loans that would never have to be repaid, are being warned to seek "urgent advice".
BBC Scotland has seen a letter sent earlier this month by Trident Trust, a Jersey-based company, which paints a stark picture.

The letter says: "HMRC has confirmed that it will seek to recover all income tax found by the Supreme Court to be due and that, where HMRC is unable to recover the tax from the employer, it may transfer the liability for unpaid tax...to employees or former employees."

While HM Revenue and Customs can still pursue BDO - the liquidators of RFC 2012 Plc - for a portion of what the company owed, more could be salvaged by pursuing the former employees. That could put many on the hook for hundreds of thousands or even millions of pounds.

Former captain Barry Ferguson received £2.5m in EBT payments, German goalkeeper Stefan Klos £2m and former manager - and current Scotland boss - Alex McLeish £1.7m, while former owner Sir David Murray received £6.3m.

And time could be running out to try to negotiate a deal, according to the trust's letter. The trust says further charges will be applied by HMRC if tax liabilities have not been settled by 5 April next year. And to do that, it says, those in question will have to approach HMRC by 30 September this year.

The letter adds: "If you do not come forward voluntarily and seek to settle on preferential terms, HMRC could well pursue you directly and make an assessment on a less favourable basis."

[sinkov]

There's no such thing as a free lunch, except for big companies like Amazon of course.

[The Bedlington Terrier]

If a "scheme" sounds too good to be true, it usually is OC.

Agreeing with you once again sinkov (!), I cannot understand why HMRC do not pursue the US MNC behemoths with the same zeal?

[oldcolner]

HMRC have been desperate to take this scheme on and Rangers gor both barrels and went into administration as a result. There will be a lot of other UK clubs who will be liable as this Jersey Trust was widely marketed.
We may not hear about it as clubs will be liable and most can pay it, they willl do so quietly, but if they don’t, the warning shots have been fired and players will know it could be them stumping up or as I expect in Glasgow a few going into bankruptcy.
Those running Trident Trust might be in the firing line for giving wrong advice - will they survive??

Multinationals are a totally different issue needing worldwide action but that’s a pipe dream.

[whittyclaretandblue]

"loans that would never have to be repaid." they aren't loans if they never need to be repaid they are income which is liable for taxation, how could they be so stupid as to think they wouldn't be taxed on it no matter what anybody said at the time.

[oldcolner]

Yes it does in hindsight, but these schemes were seen and marketed as legal and Jersey based. Surprised Trident Trust haven’t stopped trading - yet.