Stains and the Tax Man

[thegimble]

DaveO posted:
The RFL confirmed to me via email that some clubs do use offshore employment benefit trusts and some don't.

Those that don't are mindful of what happened to Arsenal so that is why they don't do it.

I have no idea if Saints are one of the clubs that do use EBT's but if they are and end up facing a big payout it will be very sweet!

One other thing is that until this season National Insurance contributions counted toward the salary cap. If they have managed to avoid paying those by using the EBT then the IR will want it paying and I am sure that would push Saints over the salary cap for the 2006 season as they would have to count it against the cap.

Dave

Also Dave if they have not paid Tax on the season's before then that must be added on and that would take them well over. Youll need to add approx 20-25% extra on each season. Thats a conservative estamate. If by paying players offshore im taking it for granted that no Tax has been paid and therefore needs to go on the cap expenditure for each season.

[OAMJSONA]

why dnt you put a witty poster in ur window Nobbys Girl.

something like

Ground for sale to pay off the taxman any unreasonable offers will be accepted

[OAMJSONA]

was only joking

:eusa9: :eusa9: :eusa9:

[fitzy]

a nice big points deduction and a hefty fine and no1 spot here we come!!

[Cruncher]

fitzy posted:
a nice big points deduction and a hefty fine and no1 spot here we come!!

After several years of accusations from us, Saints fans are now openly admitting that their club uses this method to get round the cap, yet they still berate us for having broken it last year. The hypocrasy of this is nauseating. For that reason alone, never mind the huge advantage it's given them, I'd love to see them punished severely.

Bradford and Leeds? Some Leeds muppet was recently wildly denying that his club use this method, but his tone sounded more hopeful than certain.

It would be one massive dollop of bad publicity, if it turned out that the three clubs who've dominated the Salary Cap era were the three who'd managed to get around it by paying their stars via offshore accounts.

Mind you, if it meant Saints having to pay the piper, I reckon it would be a price worth paying.

[Cruncher]

Nobby`s Girl posted:
Can i just ask...are we free of doing this? :conf:

You can never be certain with Wigan, but those 'in the know' seem pretty sure that we've not done this. Some time ago, Maurice Lindsay addressed a bunch of fans and stated this categorically. For the record, at the same time he stated that St Helens were guilty of doing this, and that some time in the future they WOULD be caught out.

[the grinch]

surely the R.F.L. know this is going on? they audit the books every year.there will be no punishment from the R.F.L. the clubs in question have found a loop hole and taken advantage of it now the tax man has stopped this. the problem stains will have is keeping to the contracts they have given to players using this method "they can't".

[Cruncher]

the grinch posted:
surely the R.F.L. know this is going on? they audit the books every year.there will be no punishment from the R.F.L. the clubs in question have found a loop hole and taken advantage of it now the tax man has stopped this. the problem stains will have is keeping to the contracts they have given to players using this method "they can't".

I don't know whether the Tax Man has stopped it, or whether he's just not got round to looking at RL clubs' books yet.

Maurice Lindsay didn't seem to think it was any kind of secret when he spoke to Wigan RL fans about it. But he said that it was very risky, and that Saints were taking a big chance.

[DaveO]

the grinch posted:
surely the R.F.L. know this is going on? they audit the books every year.there will be no punishment from the R.F.L. the clubs in question have found a loop hole and taken advantage of it now the tax man has stopped this. the problem stains will have is keeping to the contracts they have given to players using this method "they can't".

The RFL does know it is going on and any wages paid into an EBT count on the salary cap. The fact that the money is worth a lot more because it is not taxed is nothing the RFL can do anything about because the club has not spent any more than it paid into thr EBT.

The interesting question is what happens if money paid into EBT's is taxed retrospectively and also becomes liable for NI.

There is no way any club who spent up to the salary cap by using this method would not break it by quite some way.

I can see the RFL letting clubs off from 2005 and earlier because how are they going to penalise them for that?

But for 2006 if the club does have to pay out more including NI contributions and given 2006 is being audited now then they have no alternative but to act IMO or otherwise the salary cap is not worth the paper it's written on.

The RFL is definitely aware of the Arsenal situation. It was they who told me about it! So they know there is a risk and so do the clubs.

If a club gets away with paying back tax, back NI contributions (that takes them over the cap) and maybe even a fine without sanction form the RFL then the salary cap is dead in the water.

Dave

[Rugbydav]

Maybe if it does come out this could be the push the RFL need to up the salary cap.

I hate to say it but the Super League needs the likes of Saints, Bradford and Leeds. I for one being a hardened Warrior wouldn't like to see Stains fold because of this (don't hate me ha ha!)

This would certainly be bad press but could help in the long run.

Your thoughts!!