Supreme Court justices pondering tax case appeal by liquidators of oldco Rangers
An appeal by the liquidators of oldco Rangers over the so-called ''big tax case" is being considered by the UK's highest court.
An appeal by the liquidators of oldco Rangers over the so-called ''big tax case" is being considered by the UK's highest court.
Last year, judges at the Court of Session in Edinburgh granted BDO's request to take its case against an earlier legal ruling to the Supreme Court in London.
It comes after Her Majesty's Revenue and Customs (HMRC) won an appeal in November 2015 over the use of the now-outlawed employee benefit trusts (EBT) at the football club during the first decade of the century.
The Court of Session ruling agreed with HMRC's contention that the scheme, which involved payments to former Rangers employees, amounted to ''a mere redirection of earnings which did not remove the liability of employees to income tax''.
The judges decided any income derived from employees' services is classed as earnings and subject to income tax.
The decision was in relation to Murray Group companies, including the liquidated company now called RFC 2012 plc, and does not affect the current regime at Ibrox.
BDO is bidding to overturn the ruling and five Supreme Court justices are examining whether the Court of Session erred in law in reversing the original tribunal outcome.
The case is being heard by the court's president Lord Neuberger, deputy president Lady Hale and Lords Reed, Carnwath and Hodge.
After legal argument concludes on Thursday, the justices will reserve their decision for a ruling to be given on a date to be fixed.