Stains and the Tax Man

[Matthew]

As Dave says, I am sure that the RFL are aware of the situation - whether they will do anything about it is another issue entirely. It wouldn't surprise me if they quietly told any club using the EBT route that they couldn't anymore and that after any agreements had expired they couldn't be renewed.

After all the Bulls broke the cap and won SL in 2005 and weren't exactly heavily punished.

The RFL will probably try and avoid a scandal - especially one involving the current champions.

The other flip side (as has been pointed out) that if there is tax outstanding then the club in question may not be able to afford to pay it - where that would leave them would be very interesting. I for one would not want to see any of the top clubs fold - as it would only be detrimental to our sport

[Cruncher]

Matthew posted:
As Dave says, I am sure that the RFL are aware of the situation - whether they will do anything about it is another issue entirely. It wouldn't surprise me if they quietly told any club using the EBT route that they couldn't anymore and that after any agreements had expired they couldn't be renewed.

After all the Bulls broke the cap and won SL in 2005 and weren't exactly heavily punished.

The RFL will probably try and avoid a scandal - especially one involving the current champions.

The other flip side (as has been pointed out) that if there is tax outstanding then the club in question may not be able to afford to pay it - where that would leave them would be very interesting. I for one would not want to see any of the top clubs fold - as it would only be detrimental to our sport

If this issue was just to be swept under the carpet, as you suggest, then I'm pretty sure that clubs like Wigan, who've had points deducted due to salary cap breaches (and may have again), would have lots to say about it, and would say it very loudly indeed.

Besides, I'm not sure it would be within the RFL's power to smooth it all over. As far as I can see, the main problem a club like St Helens may face here is owing the Inland Revenue a load of unpaid tax. The RFL can try to calm things down all it wants, but if the Taxman wants his money, he comes and gets it ... as Arsenal found out.

Saints really could finish up in the financial crapper here. I don't want to see it happen either, but it's not as if they didn't know about the risks in advance.

[adrenalinxx]

If Saints are guilty of this then there is no way around it for them. Usually when the law changes the person/peeople can not liable or guilty for that offence if they committed it before the law was changed, until 2006 it was not illegal to use tax-free offshore accounts due to a loop-hole in the law so Saints can not be liable for doing that, however Saints used the accounts to avoid paying tax that was owed which has been illegal for along time therefore they are still liable to pay the taxes they avioded paying by using the overseas accounts.

They can avoid prosocution by declaring the money in the offshore accounts in their tax return, they will still have to pay the money back but they will avoid further trouble but if they declare the money on the tax return then it will count towards the salary cap.

If Saints have been doing this on a large scale they face either almost certain bankruptcy or a hugh points deduction by the RFL but we will just have to wait and see.

[butt monkey]

adrenalinxx posted:
They can avoid prosocution by declaring the money in the offshore accounts in their tax return, they will still have to pay the money back but they will avoid further trouble but if they declare the money on the tax return then it will count towards the salary cap.

If Saints have been doing this on a large scale they face either almost certain bankruptcy or a hugh points deduction by the RFL but we will just have to wait and see.

Cometh the day Cometh the Tax Man!!!! https://disclosures.hmrc.gov.uk/oaics/

[DaveO]

butt monkey posted:
Cometh the day Cometh the Tax Man!!!! https://disclosures.hmrc.gov.uk/oaics/

Regardless of what may happen to Saints what this says is that whichever clubs are using offshore EBT's then that little loophole has closed and they will be in the same boat as the rest of us.

What is annoying though is that if Saints are one of the clubs to have done this then their recent success will hav ebeen acheived in no small measure by doing something the Inland Revenue consider illegal.

So no matter how much they are fined or docked points in the future the record books will remain unaltered.

It will be very interesting to see how the RFL react if Saints or any other club gets lumbered with a tax bill because of this.

It would not surprise me in the least if they said they were not penalising the clubs because they acted on good faith on advice received. And they did receive advice according to Steve Williams of the RFL. It's just the other clubs received different advice advising them not to go this route.

Dave

[waterside glens]

this proves the salary cap needs changed.I wonder will the ripples from this see clubs off loading players(leeds/bradford?