HMRC Is Taking Action After The Rangers EBT Ruling: Issues Facing Trustees

Fortified by the recent Supreme Court judgment in favour of HM Revenue and Customs in RFC 2012 Plc (in liquidation) (formerly The Rangers Football Club Plc) (Appellant) v Advocate General for Scotland (Respondent) (Scotland) [2017] UKSC 45 (the Rangers Case), HMRC have already begun to issue enforcement notices to sponsoring employers for the payment of tax and National Insurance (NIC) liabilities in respect of employee benefit trusts (EBTs) on the basis that the arrangements facilitated forms of disguised remuneration to employees.

HMRC's response is not unexpected. When the judgment was issued in July, HMRC issued a strongly-worded statement, describing the ruling as having "wide ranging implications" and underlining its determination to "always...