Celtic chief Peter Lawwell among club figures linked to £434million tax dodge

[ian1964 10,724]

06:00, 12 Oct 2016

By John Ferguson

 

A RECORD investigation reveals the Parkhead chief executive, along with several former players and managers, are linked to a massive tax dodge.

 

CELTIC supremo Peter Lawwell and other club figures have been linked to a £434million tax dodge.

 

A Record investigation reveals the Hoops chief executive, along with several former players and managers, invested in a number of controversial film partnerships set up by London firm Ingenious.

 

Caretaker England manager Gareth Southgate was recently hit with a huge tax demand because of his involvement in the finance vehicles.

 

HM Revenue and Customs have branded the Limited Liability Partnership (LLP) schemes as sophisticated tax avoidance.

 

And they have issued multi-million-pound bills to hundreds of Ingenious clients all over the UK after winning a tax tribunal victory.

 

The LLPs allowed members to offset losses made on film 
investments against their tax 
liabilities for other income.

 

Companies House records show Lawwell and former manager Martin O’Neill became members of 
Ingenious’s Inside Track 3 LLP in 2004.

 

Ex-manager and player Neil Lennon was a member of Ingenious Film 
Partners 2 LLP between 2006 and 2011.

 

Former Celtic and Scotland star Gary Caldwell is an investor in Inside Track 3 LLP and Inside Track 2 LLP, while he resigned from Ingenious Film Partners LLP in 2010.

 

The Parkhead club’s former finance director Eric Riley is also a member of Inside Track 3 LLP.

 

Momo Sylla meanwhile joined up with Inside Track1 LLP and Ingenious Film Partners LLP.

 

Ingenious have admitted all of the above partnerships were covered by the tax tribunal ruling.

 

While declining to comment on specific cases, an HMRC spokesman said: “HMRC continue to challenge schemes that try to exploit tax reliefs.

 

“Avoidance does not pay. Most schemes simply don’t work and users end up having to pay all the tax due plus interest.

 

“Many will be worse off than if they had just paid the right tax up front.”

 

Ex-Celtic star Craig Bellamy 
also joined schemes linked to Ingenious in his time at Parkhead – Cherwell Films LLP and Orwell Films LLP.

 

All of the LLPs have their registered headquarters at 15 Golden Square in London – the same address as the main Ingenious group.

 

A number of other former Celtic players – Bobby Petta, Chris Sutton, John Hartson, Stan Varga, Alan Thompson and Johan Mjallby – were also involved in other LLP schemes.

 

Petta was a member of The Film Development Partnership 11 LLP, while Sutton joined WRP Dryvac LLP.

 

Varga was involved with The Gala Film Partners LLP, Innvotec 3LLP, Innvotec 6 LLP, and The Invicta Film Partnership No 23 LLP.

 

Thompson was a director of three schemes and Mjallby two.

 

Hartson was a director of 
The Mamjam Technology Platform Partnership LLP, and The Casedirector 
Technology Partnership LLP, along with Lennon.

 

In 2012, Hartson and Lennon went to court to try to get money back after the schemes failed and the taxman cracked down. Lennon had put £200,000 into the partnerships in 2003 after being told it would save him almost £500,000 in income tax.

 

But he only got £80,000 of his cash back after the Inland Revenue said the schemes were against tax rules, and the investments failed.

 

Mr Justice Hamblen rejected the case for compensation, and ruled there were “obvious risks” in “aggressive tax schemes” that would allow members to almost immediately double their money.

 

Former Hibs, Dundee United and Celtic star Darren Jackson was made bankrupt with debts of £270,000 last year. The majority of the cash was owed to the taxman and related to 
investments in a film production scheme.

 

Last week, it emerged Southgate 
was caught up in the Ingenious 
dispute. The 46-year-old former England player invested in Inside Track 3 LLP and Inside Track 1 LLP.

 

From 2002 to 2010, Ingenious attracted high earners from many walks of life.

 

As well as the Celtic players and management, former England stars David Beckham and Gary Lineker and telly favourites Ant and Dec were involved.

 

Hundreds of millions was invested and Ingenious genuinely helped to finance major films including Avatar and Life of Pi.

 

But the company claimed £1.6billion in losses and individuals who were partners in LLPs were then lawfully able to write off losses against other income.

 

However, following the tax tribunal ruling, investors have been hit with bills totalling £434million in unpaid tax – plus interest and legal fees. The total tax relief claimed by Ingenious investors was £620million.

 

Aberdeen chairman Stewart Milne, former St Mirren caretaker boss Gary Teale and ex-Scotland captain Gary 
McAllister are being probed over
investments in schemes including Inside Track Productions, Ingenious Film Partners 2 and Ingenious Games LLP.

 

According to Companies House, former Aberdeen stars Stephen Glass and Eoin Jess and ex-Rangers striker Billy Dodds also invested.

 

Members of Inside Track 1 LLP include film director Guy Ritchie, former BBC news reporter Kate Adie, singer Craig David and footballers Emile Heskey and Martin Keown.

 

Legislation put in place by former Chancellor George Osborne has allowed HMRC to re-examine the legality of more than 1000 schemes used by the rich and famous.

 

This has led to hundreds of 
accelerated payment notices being served on former and current 
footballers. HMRC can demand the huge bills be paid up front before any legal challenge.

 

Many players who were making large amounts during a short earning peak now face bills from the taxman that threaten to ruin them.

 

Rangers legend Gordon Durie went bust owing more than £200,000 this year.

 

The former Scotland international declared himself bankrupt with assets worth just half his liabilities.

 

Durie, 50, was a director of Eclipse Film Partners No.9.

 

A spokeswoman for Celtic last night said the club wouldn’t be commenting on club figures linked to film schemes.

 

A spokesman for Ingenious said: “The film partnerships run by Ingenious have already generated over £1billion in taxable income for the UK Treasury, with a further £1billion to come over the lifetime of the films they funded.

 

“They helped bring movies like Avatar, Life of Pi, Best Exotic Marigold Hotel, The Girl with a Pearl Earring, Shaun of the Dead and Hot Fuzz to the screen and are clearly run for profit.

 

“HMRC have consistently failed to distinguish between commercial 
businesses and tax avoidance schemes and have … deemed all film 
arrangements to be tax schemes.”

 

http://www.dailyrecord.co.uk/news/scottish-news/celtic-chief-peter-lawwell-among-9027258

[ian1964 10,724]

The big brooms will be out for the massive sweep sweep

[Uilleam 5,940]

It would become even more interesting if rasellik, itself, was, in any way, responsible for this.

Edited October 12, 2016 by Uilleam

[Whosthedado 1,685]

Third division beckons in the interest of sporting integrity surely!

[SteveC 150]

It would become even more interesting if rasellik, itself, was, in any way, responsible for this.

 

Given that Bellamy joined the scheme upon joining them, then they undoubtedly are - how else would he have been instantly enrolled. However, they also, undoubtedly, will not be blamed. indeed they will be pitied. TLB, who hypocritically was critical of us received pity when he lost money in the scheme.

[Uilleam 5,940]

Given that Bellamy joined the scheme upon joining them, then they undoubtedly are - how else would he have been instantly enrolled. However, they also, undoubtedly, will not be blamed. indeed they will be pitied. TLB, who hypocritically was critical of us received pity when he lost money in the scheme.

 

If rasellikfootballclub was the agency instrumental in the employees' evasion, and the players, etc, lose huge sums, might they have a case to pursue it?

I, for one, would love that, just love that.......

[ian1964 10,724]

Third division beckons in the interest of sporting integrity surely!

 

What happened to us will never happen to another Scottish club,see Hearts!,they changed/made up the rules after they dealt with us

[StuGers 477]

Interesting that so many Celtic players should be involved...

 

What's that sweeping sound?

[Scott7 6,009]

Third division beckons in the interest of sporting integrity surely!

 

No. There are a lot of decent football clubs playing in nice towns. Why inflict on them two visits by the spalpeens?

[ian1964 10,724]