Rednapp not guilty: HMRC ‘no regrets’
Harry Redknapp has been cleared of charges of tax evasion, but HMRC has “no regrets” over bringing the case to trial. Redknapp was accused of receiving bonuses of $295,000 and hiding them in a Monaco bank account. The amounts were received when he was managing Portsmouth back in 2002-2004 and paid by Milan Mandaric, who later became chairman of the club.
One payment was a bonus on the sale of Peter Crouch. HMRC argued that the payments were taxable bonuses. Redknapp and Mandaric claimed that the cash was not connected with Redknapp’s employment at Portsmouth. However, Redknapp was recorded in conversation with the News of the World as saying that one payment related to Crouch’s transfer.
The jury gave a unanimous verdict, having been told by the judge that that they could not find Redknapp guilty and at the same time acquit Mr Mandaric.
This was a case of two halves!
On one hand the case may have been expensive for the taxpayer to lose.
On the other hand the very widespread publicity may encourage a large number of people who have been engaged in dubious tax planning to be more transparent in their dealings with HMRC.
The Liechtenstein Disclosure Facility has recently been extended and so there is plenty of time left to disclose offshore accounts.
Please be ware that HMRC have considerable investigation powers at their disposal, including using their Civil Investigation of Fraud procedures as opposed to taking criminal proceedings to investigate and take further action.
For more details of tax planning strategies contact one of our Financial Planning Consultants, at Pareto Lawrence we offer both Financial and tax planning advice to corporate and private clients.