A number of former Rangers stars face hefty tax bills this year, according to a report, after failing to agree on a settlement with HMRC over their use of Employee Benefit Trusts (EBTs) during their time at Ibrox.
According to the Daily Record, “several” former Gers failed to meet the April 5th deadline to negotiate with the taxman and will now be hit with a demand for the outstanding amount in full.
There are no details on which former players have and haven’t struck a deal with HMRC, with over 80 having been part of the controversial tax scheme between 2001 and 2010.
Rangers’ use of EBTs has long been contested by the taxman and played a massive part in forcing the liquidation of the old company which ran the club in 2012.
Businesses would set up trusts and make cash payments from these trusts in the form of tax-free loans to employees or their beneficiaries – avoiding the need to pay tax. In many cases, the loans were never repaid.
After a Supreme Court ruling in 2012 determined that EBTs weren’t loans but instead should have been viewed as taxable income, HMRC were given the ok to try and claw back what they could from individuals involved.
Despite that, some of those who had EBTs feel the club should take responsibility and foot the bill – according to the Record’s report.
Former club owner David Murray had the biggest liability after receiving more than £3million through the EBT scheme