The courts and HM Revenue and Customs (HMRC) have not finished with Rangers "big tax case" just yet. Senior judges in Edinburgh have begun hearing another appeal by the tax authorities into the legality of Employee Benefit Trusts previously used by the club when under the control of Sir David Murray. The club won the original so-called "big tax case" in 2012 when it was ruled that the use of the EBT scheme, which provided tax-free loans to players and executives, was legal. HMRC lost its original appeal to the decision in July last year but were granted leave to appeal that decision, with the hearing at the Court of Session opening yesterday. It is expected to last four days.
The challenge is centred on the company which ran Rangers until 2012 and the use of EBTs relates to Murray’s time as owner of the Ibrox club. Craig Whyte bought the club from Murray in 2011 for £1. The decision on the original "big tax case" ruling in 2012 came after the company was liquidated for non-payment of another tax bill. HMRC is worried about the ruling setting a precedent that companies and employees can avoid paying income tax by using EBTs.