Stains and the Tax Man

[captinjack]

I have been hearing for the past couple of days that the Tax Man is showing great interest in the Stains books. And that it has been suggested to the tax man from somebody who was something to do with the stains that the books may make interest reading for HM Tax Man. Has anyone any further on this,or is it just wishful thinking on alot of Rugby League supporters?

[ultimate warrior]

From what I have heard they are very interested indeed. It is reportadley in relation to the players being paid in off shore accounts, which under old legislation meant that tax wasn't paid on this money, but the law was changed, and any person working in the UK must pay tax and national insurance, whether paid on or off shore. If found guilty massive fines can be impossed, and they can go back over the last 7 years.

If Stains are found guilty, then they will face a massive fine due to the amount of money that has been paid in this way over that 7 year period. As I say, this is just what I have heard, it is not confirmed or anything, but it does look like the tax man is going to look in to it.

[fitzy]

hope the tax man does look into it and gives them a hefty fine but will stains be able to afford it? that would also explain how they have managed to keep so many internationl players under the salarary cap.They might also uncover an off shore acount which has something to do with the rfl I wonder stains have been giving them "gifts"?

[Cruncher]

fitzy posted:
hope the tax man does look into it and gives them a hefty fine but will stains be able to afford it? that would also explain how they have managed to keep so many internationl players under the salarary cap

It's the entire reason why they've managed to keep so many internationals despite the cap. Plus, their fans have been bragging about it, saying it's smart thinking and that it proves they're one step ahead of everyone else as usual.

All I can say is that Maurice Lindsay, for all his faults, mentioned that they were doing this several years ago and that, at some point, there might be a heavy price to pay.

I so hope there is. They lambasted our club for breaking the cap, yet, more or less by their own admission, have also found the cap too much of a hindrance to adhere to it.

It's interesting. Does anyone know whether or not the person who's drawn the Tax Man's attention to Saints' hijinks is a certain Saints executive who recently, rather mysteriously, had to leave the club?

(For what it's worth, Arsenal got lumbered with an £11 million bill for this very same offence. Anything of that magnitude would sink St Helens for sure. I wouldn't want to see that happen, but I'd love to see them having to sell off their team just to make ends meet).

[WxmWarrior]

That does sound like a small coincidence!

As an accountant (don't hold it against me, I have a personality) there are always arguments to be had with the merry audit brigade over what constitutes avoidance or evasion (the latter being illegal) but given the high profile legislation relating to this area of "creative accounting" Stains wouldn't have a leg to stand on if found guilty.

[highland convert]

Taken the through put on southern hemesphere players that have come and gone, the taxman takes the line of least resistance. If the player is back in oz or wherever the taxman will take the tax from stains. It would be up to them to get it from overseas. Thats just the unpaid tax not the fine. That alone could be millions. HC (who is currently under tax investigation I may add) I've been promised it is just routine :eusa10:

[Matthew-Warrior]

IF Saints are found guilty of this, and they cannot afford the fine. They should be deducted points on the Super League table.

[thegimble]

If any of this is true then it does bring into question salary cap.

As if Saints pay players and not the tax then all the money goes to the player. Therefore Tax avoidance to start off with.

Then this brings into question if Saints avoided paying tax and payed the players the money in full then Saints must pay all the tax back and this added onto the cap for each season they have avioded paying the tax. therefore they are well over on the Salary cap and thus should be deducted points on each season according to the penalty.

There is now active policy by the Tax office to recover any tax avoidance schemes, which is not the full amount by a part payment.

Still if Saints have been cheating they should be deducted points as all the Saints fans moaned at us last season.

[Matthew]

If it is true I am sure Eddie and Stevo will chip in with a "save our beloved saints appeal"!

[DaveO]

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