Quote:
Originally Posted by Derek
The Rangers EBTs were declared every year, never hidden, and the same schemes used by a large number of other teams in the UK.
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Though Rangers declared EBTs, they weren't legal because of the way they were used.
EBT must not be used to supplement wages, as an expected benefit. that is the issue.
HMRC say
EBTs have increasingly been used for avoidance purposes, with the aim of providing employees and directors with benefits in ways that aim to minimise or avoid liability to income tax (and PAYE) and employers’ National Insurance Contributions
Problem with Rangers was they got greedy, they built the EBT as part of the expected remuneration, and they got caught. Sending letters out stating that was kind of stupid, similar to robbing a bank and leaving your address for them to come pick up the empty bags
