Rangers Tax Appeal May Be Heard On 19th July 2013 – Correction – No It Won’t!

Earlier in the week I confidently predicted that the appeal to the Upper Tribunal would probably, based upon the time lag for fixing other Upper Tribunal Tax appeals, not be heard until the summer of 2014, or even later.

Clearly the UTT was awaiting my prediction so that it could prove me wrong.

The date has now been published and the HMRC appeal involving liquidated Rangers and the four Murray Group companies is now scheduled (probably) to take place in Edinburgh on 19th July 2013. So my guess was only 12 months or more out!

The tribunal listings can be seen here.

The hearing is scheduled for the Edinburgh Tribunal Centre, George House, 126 George Street, Edinburgh EH2 4HH.

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When Will the “Rangers” Tax Appeal Be Heard? Summer 2014? Later?

The Upper Tribunal (Tax) has on its list a case of great interest to the football fans of Scotland.

Well, actually it is listed as five separate appeals, which will however be heard at the one time.

HMRC is listed as being the appellant against the following respondents:-

• The former Rangers Football Club PLC (now RFC 2012 PLC) (in liquidation
• GM Mining Ltd
• Premier Property Group Ltd
• Murray Group Management Ltd
• Murray Group Holdings Ltd

HMRC Given Leave to Appeal Tribunal Decision re MIH/”Rangers” – Plus Clarification of “Tomo Blog”

As broken by Alex Thomson of Channel 4 News yesterday, HMRC have been granted leave to appeal against the majority decision in the EBT tax case known to one and all now as the “Big Tax Case”( © RangersTaxCase.com.)

After a flurry of anger on Twitter and elsewhere about this “leak” to Mr Thomson, and even more misplaced anger by people who thought this meant the appeal itself had been decided, Mr Thomson published a blog post on the subject. You can find it here.

As far as leave to appeal being granted was concerned, no one I spoke to with knowledge of the appeal system thought that the application for leave would be refused. An appeal can only be taken forward on a question of law.

What, some have cried, was the question of law in this case?

The answer to that question is very simple. (Though the answer to the legal question is not).

Put simply the majority interpreted the legislation and case law to allow them to look at the form of what was done whilst the minority judge applied the same law and reached the conclusion that the substance of what was done was more important than the form.

Therefore there is a clear distinction about how the law should be applied.

That is, undoubtedly, a “question of law”.

How to Appeal From the First Tier Tribunal (Tax) to the Upper Tribunal

This is summarised from a Ministry of Justice information sheet which can be found here. It is addressed to the taxpayer who has been party to proceedings before the First Tier Tribunal (Tax). This details what happens in an appeal.

I have added in a few comments which are in bold with reference to the HMRC v Rangers/MIH decision, in the event that HMRC pursue an appeal.

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If you won your case at the First-tier Tribunal, it is still possible for HMRC to appeal to the Upper Tribunal. The rules about applying for the full written statement of reasons and permission to appeal are equally applicable to the Respondent as to you.

If the Respondent is given permission to appeal you will be told by the First-tier Tribunal office. If they do, you will normally be paid or repaid amounts awarded to you by the First-tier tribunal, but in some cases payment maybe suspended. You will be entitled to make comments in writing before the Upper Tribunal judge decides the appeal. You will also be able to ask for an oral hearing if you wish.

I suspect this case, if appealed, will not be a paper appeal. It is an important enough issue for an oral hearing. The following section is addressed to the taxpayer, but is applicable in this instance to HMRC, rather than MIH/Rangers.