: Fri Apr 03, 2009 9:09 pm  

Iiiii thank you. and i'm here all week!
Bet the lazy hacks pick up these details

: Fri Apr 03, 2009 11:08 pm  

bobsmyuncle wrote:

The writing has been on the wall for years. Why then have the clubs and particularly the governing body, RFL, not reacted before now?

HMRC might finally decide that they don't like this, and look to take some tax retrospectively, but the RFL would have been on shaky ground if they'd tried to stop clubs doing something which, at the time, wasn't counted as evasion. Should the clubs involved have stopped doing this when it became apparent (as it has been for some time) that HMRC were looking into it? Maybe, but then again I'm sure they'd argue that, while there was a loophole there, it made sense to exploit it (as long as they can afford any future bill that may arise).

I doubt I'm sure the eventual outcome will be seen to affect clubs who have contracts in place with overseas players which will suddenly cost them more, as we saw from Wigan a couple of years back the powers that be won't allow payments to players to be deferred without counting on cap.

: Sat Apr 04, 2009 12:21 am  

With respect Asim your post is ill informed and speculative at best.
There is no such thing as a loophole in tax law. Either a payment is within the tax regulations or it is not. Tax avoidance is a mechanism to arrange affairs legally within those regulations and tax evasion is to break them.

Yes, the clubs should have considered HMRC opinions on this issue years before and not burried their heads in the sand, and yes the RFL should have been aware of the same and advised clubs of their responsibitilies in complying with the tax appropriate regulations. Thats part of their role.

Agreed that the RFL cant force the clubs to make contract terms. but rather susect that when the sh@t hits the fan, as it will ,when the big bad IR wolf comes after the clubs there will be carnage.


But YES...

: Sat Apr 04, 2009 6:38 pm  

bobsmyuncle wrote:

With respect Asim your post is ill informed and speculative at best.
There is no such thing as a loophole in tax law. Either a payment is within the tax regulations or it is not. Tax avoidance is a mechanism to arrange affairs legally within those regulations and tax evasion is to break them.

I'm fully aware of the differences, and more informed than anyone would want to be with regards to tax and HMRC, but this practice has been going on for so long, across a multitude of industries, that the RFL would have had one hell of a task stopping clubs from doing it without incurring their wrath. I referred to it as a loophole in the sense that clubs were using it to gain advantage rather than in terms of tax laws.

They may finally come decide this is evasion, lets get the clubs, but as there had been no judgement or clampdown when the practice started in SL I can't blame clubs for taking advantage of it (on the proviso that they could cover any future arising bill).

I think Warrington trying to offload Gleeson for a fee may well be a good indicator as to what the clubs affected feel might be about to happen, everyone knows this isn't a new issue but it will be interesting to see which clubs have buried their heads in the sand about it.

: Sun Apr 05, 2009 5:35 pm  

Bullas are now to be investigated by HMRC. Apparently we have listed 17 cleaners as playing staff.

: Sun Apr 05, 2009 5:53 pm  

rugbyreddog wrote:

Bullas are now to be investigated by HMRC. Apparently we have listed 17 cleaners as playing staff.

You have got to laugh...