Rangers tax case goes back to court
- Published
Three senior judges have begun hearing a legal challenge to the original outcome of the so-called Rangers "big tax case".
In 2012 a tribunal ruled that the club's use of Employee Benefit Trusts, which provided tax-free loans, was not illegal.
Lawyers acting for HMRC told the court it was being asked to endorse a "fantastically silly proposition".
The challenge concerns the company which ran Rangers until 2012.
HM Revenue and Customs maintains that the effect of previous tribunal decisions in the case is that employees can avoid paying income tax by agreeing that payments be made to others of their choosing, rather than getting the money themselves.
Their lawyer, Julian Ghosh QC, told the court: "When money is paid for something you did it is also derived by the earner, the worker.
"This cash payment was part of the remuneration package. It was wages and bonuses. This money was earned for work done."
He said so far as the players were concerned it was for appearing in football matches and winning games and for the executives for work performed.
Appeal process
In July 2014, an upper tribunal dismissed an HMRC appeal against a first-tier decision, external on payments made to players and other employees, although it did send some aspects of the case back to the first tier tribunal.
The Revenue is arguing that both a first tier tribunal and the upper tribunal, chaired by Lord Doherty, erred in the case.
Its appeal argues: "The scheme in this case was established in terms that had effect so that, on appointment of the funds to the individual sub-trusts, the sums in question were 'paid' to the employee."
The use of employee benefit trusts relate back to Sir David Murray's time in charge of the Ibrox club before ownership changed.
The company which owned Rangers was subsequently forced into administration while under Craig Whyte's control and later went into liquidation.
The appeal at the Court of Session in Edinburgh before the Lord Justice Clerk, Lord Carloway, sitting with Lord Menzies and Lord Drummond Young is set down to last four days.
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