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Penalty Shoot Out

Penalty Shoot Out

I've always worked on the basis that it is the employers duty to deduct tax from an employee.

If that is the case how does a famous football manager end up in court for not paying tax, surely he can't have a liability?

If he has how does he have a liability, there doesnt seem to be any mention of his having not paid higher rate tax on other income, just the payment itself.

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03rd Feb 2012 08:54

Fair enough question - but it's still before the court.

Best let the court make a decision before we comment about it or even around it.

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03rd Feb 2012 11:56

The charges

As I understand it the charges are:

 

Count one: Milan Mandaric and Henry James Redknapp, between the 1st day of April 2002 and the 28th day of Nov 2007, at the material times respectively the Chairman and the Football Manager of Portsmouth City Football Club Limited, with intent to defraud and to the prejudice of HM Revenue and Customs, arranged for $145,000, paid by Milan Mandaric as a result of or in connection with Henry James Redknapp’s employment and as a reward for services, to be transferred to a Monaco bank account opened by Henry James Redknapp for that purpose, in order to conceal the said emolument from HM Revenue and Customs and evade the payment of Income Tax and National Insurance Contributions thereon (whether by the operation of PAYE by the club or otherwise).

Count two: Milan Mandaric and Henry James Redknapp, between the 1st day of May 2004 and the 28th day of November 2007, at the material times the Chairman and the Football Manager of Portsmouth City Football Club Limited, with intent to defraud and to the prejudice of HM Revenue and Customs, arranged for $150,000, paid by Milan Mandaric as a result of or in connection with Henry James Redknapp’s employment and as a reward for services, to be transferred to a Monaco bank account opened by Henry James Redknapp for that purpose, in order to conceal the said employment income from HM Revenue and Customs and evade the payment of Income Tax and National Insurance Contributions thereon (whether by the operation of PAYE by the club or otherwise).

 

To take a rather different example, as you can imagine if you, as an accountant, by doing something dishonest arranged for tax to be evaded by a client of yours then you would commit a criminal offence.  It is not necessary that the wrongdoer himself benefits in order for an offence to be committed.

But I do not want to comment on the case currently before the courts.

David

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