EBT

EBTs – “Going forward, it is unlikely that any assessments to tax they (HMRC) issue will be anywhere near as generous as was previously available”

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Source: Ogier via mondaq 23 July 2017

“HMRC’s successful appeal against the owners of the now-liquidated Glasgow Rangers FC is likely to lead to further challenges against Employee Benefit Trusts (EBT) and other loan and benefit schemes that have not yet gone through the settlement process, says Employee Incentives specialist Katherine Neal of Ogier.”

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Glasgow Rangers tax case: supreme court rules in favour of HMRC

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Source: the guardian.com

“Companies that paid staff via “contrived” employee benefit trusts have been urged to come forward, after HM Revenue & Customs scored a landmark victory in a tax avoidance case against the former incarnation of Rangers football club.”

“This decision has wide-ranging implications for other avoidance cases and we encourage anyone who’s tried to avoid tax on their earnings to now agree with us the tax owed,” said David Richardson, director general of HMRC’s customer compliance group.

“HMRC will always challenge contrived arrangements that try to deliver tax advantages never intended by parliament.”

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Glasgow Rangers tax avoidance case reaches Supreme Court

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Source: heraldscotland.com 15 March 2017

The Supreme Court case centres on Rangers’ use of employee benefit trusts (EBTs) to pay players and staff, avoiding tax of £46.2m.

The case will examine the appeal arising from the Scottish Court of Session, which agreed with the Revenue.

The outcome could affect thousands of similar schemes used by companies to put money into trust for top employees. The employees’ goal was to avoid tax while benefiting from loans or property bought with the cash.

HMRC offered users of the schemes an opportunity to make use of transitional relief on investment gains if they settle by the end of this month.

Andy Wood, a director of Enterprise Tax Consultancy, based in Cheshire, said he had helped a club reach a six-figure agreement with HMRC in relation to the affairs of one senior official and was aware of “five or six” other such deals.

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