Supreme Court to hear oldco Rangers ‘big tax case’ appeal

Liquidators of oldco Rangers have appealed the decision. Picture: John Devlin
Liquidators of oldco Rangers have appealed the decision. Picture: John Devlin
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The UK’s highest court is to hear an appeal by the liquidators of oldco Rangers over the so-called “big tax case”.

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Last year, judges at the Court of Session in Edinburgh granted BDO’s request to bring an appeal against an earlier legal ruling to the Supreme Court in London.

It comes after Her Majesty’s Revenue and Customs (HMRC) won an appeal in November 2015 over the use of the now-outlawed employee benefit trusts (EBT) at the club during the first decade of the century.

That Court of Session ruling agreed with HMRC’s contention that the scheme, which involved payments to former Rangers employees, amounted to “a mere redirection of earnings which did not remove the liability of employees to income tax”.

The judges decided any income derived from employees’ services is classed as earnings and subject to income tax.

The decision was in relation to Murray Group companies, including the liquidated company now called RFC 2012 plc, and does not affect the current regime at Ibrox.

BDO is bidding to overturn the ruling and five Supreme Court justices are to examine whether the Court of Session erred in law in reversing the original tribunal outcome.

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