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BDO allowed to appeal Rangers tax case to Supreme Court
09-01-2016, 05:38 AM (This post was last modified: 09-01-2016 05:39 AM by zopulent.)
Post: #1
Information BDO allowed to appeal Rangers tax case to Supreme Court
BDO allowed to appeal Rangers tax case to Supreme Court: (BBC)

Rangers' liquidators have been granted leave to appeal to the UK Supreme Court over a ruling that the use of Employee Benefit Trusts (EBTs) broke tax rules.

Rangers used the scheme from 2001 until 2010 to give millions of pounds of tax-free loans to players and other staff.

HM Revenue and Customs (HMRC) lost two tribunals before judges agreed these were salary payments subject to tax.

The judges have now said liquidators BDO can appeal, as the ruling has implications for future cases.

Rangers' use of EBTs and the subsequent appeals by HMRC have become known as the "big tax case".

HMRC lost its initial appeal that tax was due on EBTs at a First Tier Tax Tribunal on 2012.

The decision was upheld at an Upper Tier Tribunal in 2014.

HMRC's third appeal, made last year, was upheld in a decision issued by Lord Carloway, sitting with Lord Menzies and Lord Drummond Young.

The judges ruled that if income was derived from an employee's services, in their capacity as an employee, it was an emolument or earnings and "thus assessable to income tax".

The same judges have now allowed an appeal to the UK Supreme Cout.

Lord Carloway said: "The court is of the of the view that there is an arguable point in law of public interest which should allow the appeal to the UK Supreme Court to proceed.

"There are significant issues in this case which may apply to other similar situations."

The decision was in relation to Murray Group companies, including the liquidated company RFC 2012 - formerly The Rangers Football Club PLC.

It has no impact on the current owners at Ibrox.
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