HM Revenue & Customs will seek permission to appeal against a tribunal ruling that the use of employee benefit trusts by the former Rangers Football Club was not illegal, the U.K. tax authority said in an e-mailed statement today.
The club, which went into liquidation this year, used the trusts to make tax-free loans totaling 47.7 million pounds to players and staff between 2001 and 2010 in the form of tax-free loans. HMRC had challenged the payments, arguing they were illegal and subject to tax.
Judges on the First Tier Tax Tribunal ruled by a two-to-one majority last month that the payments were loans that could be repaid and so were not liable to income tax.
To contact the reporter on this story: Peter Woodifield in Edinburgh at email@example.com
To contact the editor responsible for this story: Rodney Jefferson at firstname.lastname@example.org