Rangers’ liquidators BDO have announced that they are seeking leave to appeal the Court of Session’s ruling on the Ibrox club’s use of EBTs, which found in favour of HMRC.
BDO have made an application to the Court of Session to be granted leave to appeal [the final appeal]to the Supreme Court in London.
Announcing their decision, BDO said: Following discussions with the company’s legal advisers and the liquidation committee, the joint liquidators have gone to check my pan status and filed an application seeking leave to appeal the Inner House of the Court of Session decision in respect of the EBT case.
“If the company successfully obtains leave to appeal, the appeal will be heard in the Supreme Court in London. The joint liquidators are not in a position at this stage to make any further comment in respect of the appeal.”
Rangers used the EBT scheme from 2001 until 2010 to give millions of pounds of tax-free payments to players and staff.
Since the Court of Session judges agreed with HMRC that payments via the EBT schemes should be taxable like all salaries, there had been increasing calls for Rangers to be stripped of their titles and competitions won during the years that the scheme was used – with the claims that Rangers had obtained an unfair sporting advantage over the other clubs in the game.
The appeal judges, Lord Carloway, Lord Menzies and Lord Drummond Young ruled that if income was derived from an employee’s services, in their capacity as an employee, it was an emolument or earnings and ‘thus assessable to income tax’.
HMRC had lost two previous tax tribunals before winning at the Court of Session earlier this month.