Was the EBTs not legal then though. As soon as it became illegal, I remember us being hit the hardest, even though a lot of teams did it as it was legal, including Celtic.
The EBTs were legal all the time they were actually used. Unfortunately, the side letters were ambiguously vague and left Rangers open to the interpretation that there was no need for the loans to be repaid.
However, people forget that HMRC lost in both the specialist tax courts, Rangers won in both the Lower Tax Tribunal and the Upper Tax tribunal.
Both of those courts rejected the idea that HMRC could apply a new interpretation of the tax law retrospectively.
It was only when HMRC appealed to the high court did they win the argument that the interpretation of the law could be applied retrospectively.
The zealous persistence of HMRC in its pursuit of Rangers suggested there
was a political motive behind the tactics adopted.
HMRC settled with Arsenal and others who had used EBT’s but seemed intent on trying to bankrupt Rangers. I think I’m right in saying that Murray at one point offered them £10m that they rejected.
This was the ‘big tax case’.
Not to be confused with Craig Whyte and his nonpayment of income tax deducted from staff salaries but not passed on to HMRC.
