Sport: SFA refuses to take part in new Rangers tax probe
● Game would be damaged further by ‘raking over coals’, says governing body
The Scottish FA has rejected an approach from the Scottish Professional Football League for an independent review of the handling of non-payment of taxes by clubs in the aftermath of the recent and binding Supreme Court judgment against Rangers’ liquidators BDO.
The SPFL board, after determining it could take no further disciplinary action against Rangers for the use of Employee Benefit Trusts and other tax schemes during Sir David Murray’s stewardship of the Ibrox club, declared its support for a fresh review.
The SFA board has now issued its response, informing all 42 SPFL member clubs it has “declined the invitation” to take part.
In a leaked letter, the game’s governing body said the image of the game in Scotland would only be damaged further by “raking over the coals”.
The SFA has also revealed that its compliance officer is investigating the legitimacy of the Uefa licence the governing body granted to Rangers in 2011 in the light of recent evidence at the fraud trial of the club’s former owner Craig Whyte.
At the time of the Supreme Court ruling on 5 July, the SFA had stated that, on the advice of senior legal counsel, there was a “limited chance” of imposing fresh sanctions against Rangers and that no further action would be taken.
The lengthy legal proceedings known as the “big tax case” concluded when the Supreme Court dismissed a final appeal by BDO over Rangers’ use of EBTS. The court found in favour of HMRC that income tax and national insurance contributions should have been paid on the trusts which Murray’s group of companies used to pay employees from 2001 to 2009.
HMRC had previously lost its initial appeal at a First Tier Tax Tribunal in October 2012, a judgment which was then upheld by an Upper Tier Tribunal in July 2014. HMRC made a third appeal, to the Court of Session, which ruled in the taxman’s favour in November 2015.
BDO, acting on behalf of creditors in the liquidation of RFC 2012 (formerly The Rangers Football Club plc) was given leave to make a further appeal to the Supreme Court which heard the case over two days in March this year. The outcome had no material bearing on the current owners of Rangers in the aftermath of the club’s financial collapse in 2012.
It has seen renewed calls, notably from a number of supporters groups, to consider the possibility of stripping honours won by Rangers during the years when EBTS were used.
An independent commission chaired by Lord Nimmo
The SFA also revealed its compliance officer is investigating the legitimacy of the Uefa licence granted to Rangers in 2011
Smith in February 2013 decided the club had gained no competitive advantage when they breached league rules by making undeclared payments to players.
In the leaked letter from the SFA to the SPFL member clubs, the call to participate in fresh action is firmly rejected.
“After careful consideration, the Board of the Scottish FA has declined the invitation to participate in such a review,” the SFA said in its letter.
“The Scottish FA is currently examining the detail of what was said in the most recent court cases and you can be assured that the matter will be dealt with by the Compliance Officer if there is any suggestion that the organisation has been knowingly misled in any of the matters that came before it.
“However, the image of the game in Scotland can only be damaged further by ‘raking over the coals’ of everything that has happened in the last six years for a further lengthy period of time.
“No-one is complacent or insensitive to the issues. It will be impossible to satisfy every supporter, every club official and every member club. Nevertheless, the Board of the Scottish FA is resolute. It has acted with integrity and in the best interests of Scottish football at all times.” In the letter to its member clubs, the SFA also said that the court testimony of two former directors of Rangers Football Club plc (Oldco) regarding “overdue payables” – in what is known as the “Wee Tax Case” – “might have implications in the context of the Uefa licence granted in 2011”.
“On the face of it, there seem to be contradictions between those statements and written representations made at the time,” the letter said.
“In 2011, Oldco indicated there was an ongoing dispute with HMRC, but the evidence in the Craig Whyte [former Rangers owner, pictured] trial suggests that Oldco knew by early 2011 that it had no defence to HMRC’S claim.
“This matter has been referred to the compliance officer for further investigation following receipt of information of a written opinion from senior counsel.”