Skip to main content

"If you want some accessible but informative insight into football then I suggest you couldn't do better than the Political Economy of Football website, which is not only intelligible but comes with the added bonus of being written by Addicks fan Wyn Grant."
Ben Hayes - Charlton Athletic programme

Rangers lose tax case


The Supreme Court yesterday ruled in favour of HM Revenue and Customs in a long-running dispute over offshore trusts used by Rangers Football Club.   Five judges unanimously dismissed an appeal by the liquidators of RC 2012, the company formerly known as Rangers Football Club before its financial collapse in 2012.

The dispute centred on the club's use of structures known as employee benefit trusts (EBTs) to pay players and staff in loans between 2001 and 2009.  HMRC said it missed out out on £46.2m because the club used payments to EBTs in Jersey to fund tax free loans to Rangers employees.  The court ruled that Rangers' payments into EBTs were subject to income tax under PAYE rules.

Reactions to the outcome within Scottish football can be found here.   Some have taken the view that Rangers gained an unfair advantage because it was able to afford players that other clubs could not.

Many former Rangers players may now face large tax bills, while creditors of the company can expect a much smaller pay out from liquidation.