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HMRC urged to scrutinise tax implications of Man City case

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HMRC urged to scrutinise tax implications of Man City case

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Findings from the Premier League’s case against Manchester City require scrutiny from His Majesty’s Revenue and Customs, the chair of a cross-party group of MPs has told the tax authority.

It was confirmed on Tuesday that an independent commission found City guilty of all charges relating to breaches of the Premier League’s financial regulations between the 2009-10 and 2017-18 seasons.

City have repeatedly denied guilt, and have signalled an intent to lodge an appeal by Friday.

The club were found to have artificially inflated revenue through “sham” sponsorship agreements with the help of their owners.

The independent commission which studied the case found City “utilised devices” to “disguise the true extent of certain club liabilities”.

The Treasury Committee, which is responsible for overseeing policies and administration of HMRC, has therefore asked whether the government department has requested the redacted documents contained within the commission’s report.

Dame Meg Hillier, chair of the Treasury Committee, said she would “welcome reassurance from HMRC that you are seized of the importance of these issues and the public interest in this case”.

City to argue sponsorship deals came from Abu Dhabi government

Manchester City, who deny wrongdoing, will claim as part of their appeal that key sponsorship deals were funded by the Abu Dhabi government, rather than the club’s owners.

Owners Abu Dhabi United Group (ADUG) – a private investment company belonging to United Arab Emirates vice-president and deputy prime minister Sheikh Mansour – are said to have topped up the value of commercial deals as part of a “disguised funding scheme” to the scale of £830.69m.

This, it was argued, enabled the club to appear to comply with Premier League and Uefa financial rules.

However, as first reported by the Daily Mail and Times, sources have told BBC Sport that City are expected to tell an appeal board that they have evidence showing the money directed to sponsors came from the Abu Dhabi government, rather than from ADUG.

The independent commission rejected this argument as “untrue” in its findings, saying: “We concluded that it was an ‘explanation’ that the club had concocted well after the event in an attempt to obscure and conceal the realities of the disguised funding scheme.”

City have claimed the commission’s decision contained “clear material errors, of law, principle and fact, and is unsafe”.

Mansour is a member of the ruling family of Abu Dhabi, and the brother of UAE President Sheikh Mohamed bin Zayed Al Nahyan. ADUG took over City in 2008. Premier League rules allow state-owned bodies to sponsor clubs.

On Saturday, City chairman Khaldoon Al Mubarak referred to “irrefutable evidence” that he claimed supports the club’s claims of innocence.

City’s principal sponsor Etihad Airways has said it is considering legal action against the Premier League, claiming the release of the commission findings had “damaging implications… despite the airline not being named in the redacted published findings”.

The UAE’s state-owned national airline said it “categorically rejects any finding, conclusion or implication that suggests the airline has ever been involved in improper commercial arrangements”.

Etihad is owned by sovereign wealth fund L’Imad which is chaired by the Crown Prince of Abu Dhabi, the son of the UAE president.

The Premier League declined to comment when contacted by BBC Sport.

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Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: BBC