http://www.thesun.co.uk/sol/homepag...ier-League-clubs-to-go-bust-like-Rangers.html TAX probes have been launched into eight top English football clubs, sparking fears they could be plunged into financial meltdown like Glasgow Rangers. The official investigations into current and ex-Premier League sides could potentially involve hundreds of millions of pounds in unpaid tax. The revelation came as it was announced yesterday the debt-stricken Scottish giants had entered administration over an alleged £9million owed to HM Revenue & Customs. They are also facing another potential bill of more than £70million after an ongoing inquiry into the use of a tax avoidance device, Employment Benefit Trusts. EBTs allowed foreign stars to have their wages paid into a trust â and then withdraw the money once they were no longer living in Britain. They would then avoid paying the top 50 per cent rate of UK tax. But the taxman has declared that illegal â and claims Rangers' previous owners used the trusts to avoid paying millions of pounds in tax and National Insurance on the player payroll. Football finance expert Dr Chris Brady said: "Rangers may be the tip of the iceberg. EBTs became popular with clubs as a means of reducing crippling wage bills. We believe at least eight current or former Premier League clubs are being investigated."
What I dont understand is how these type of figures go unoticed for so long? I run my own businesss and HMRC are on my case all the time auditing and cross referencing payments and returns! Who ever has been advising/operating these schemes (which would apprear to be a type fraud/tax avoidence) shoudl be laible themselves for miss advice? But I also know that HMRC get it wrong! There was a large road contrsuction company who got a contrcat to build part of the M74 (I think?), there was a dispute of VAT and in the end HMRC shut them down, made 635 people redundant and had to pay another company to finish of the work! In court HMRC were found to be wrong and had repay legal costs, but ironically didnt have to pay compensation. The owner was a multilillionaire, now they are just and average Jo Bloggs who lost a business with a masive turnover, lost 80 million worth of equipment and laid over 600 people off in the Glassgow area - shocking!
The problem is with HMRC is that they are answerable to no-one in their daily operations. They have more powers than the Police Force and can enter your home, or workplace, WITHOUT a warrant, lock up files, take away computers etc WITHOUT recourse, I think it is the ONLY Law Enforcement Agency where you are guilty before being proved innocent. Somebody said, only the guilty would object to those powers, really!!!!!! I am all for law and order, BUT.................................... Evening all
Nicky UEFA Cup here we.... I'll take a guess at a few of the (8) clubs that might be going down the pan... money wise. Portsmouth And SEVEN other's
HMRC are not as switched on as you might think. If they were then Stoke on Trent would not have become the mobile phone fraud capital of Europe with the VAT carousel fraud that went on. Old buddy of mine did them for 38 million but said it was only 9 million (only 9million!!!) He got sent to Sudbury open prison where he just walked out one day and fled to Switzerland to his awaiting family. Swiss authorities arrested him on UK Police's advice but back then VAT crime was not a serious enough offence to warrant extradition. He is now back in the UK and safely behind bars but the point I make is that this sort of crime went on for years without them even suspecting any wrong doing. I think the Redknapp trial may have brought some of this to the forefront. I'm the same as Smithers I'm self employed too and been on the receiving end of a tax investigation or enquiry as they prefer to call it and it is not pleasant. Police - innocent till proven guilty....... HMRC guilty till proven innocent!!!
Waddo My younger brother is a self emplyed Accountant and some of the things he does find, would make your'e hair curl. I know he's had to go to court a few times (with clients) of course! Many are fined, made bankrupt for far less the Mr Redknapp and many others who seem to just brush things aside. Of cours Harry was found not guitly and well done to him for that... it must be a bloody nightmare to go through.. My Bruv many times has said this. Your'e dammed if it you and dammed if you don't. HMRC are a law unto themselves.. the power's they do have are frightening IMO. I'm lucky as he can fill out any self accesment forms that come along occasionally. OFF topic.. ENJOY the game Waddo..
