New problems for Man City! This time — tax fraud
Manchester City's problems away from the pitch may be getting even more serious.
Details: British tax lawyer Dan Neidle and Tax Policy Associates say the available evidence points to around £12 million in potentially unpaid UK tax connected with payments made during Roberto Mancini's spell as Manchester City manager.
The assessment concerns remuneration routed through a consultancy arrangement involving Sparkleglow Holdings. Leaked documents identify the person behind the arrangement as Mancini, while the Premier League's independent Commission concluded that the relevant contractual structure was a sham and that the payments should have been included in the manager's agreement with City.
Neidle argues that if the payments were really remuneration for Mancini's employment, Manchester City should have operated PAYE income tax and National Insurance in the usual way. His analysis estimates the underlying unpaid tax and National Insurance at approximately £11.6 million. With interest and possible penalties included, the eventual liability could potentially reach around £23-24 million.
However, the report stresses that this remains a preliminary assessment. It assumes the Commission's findings of fact are correct, relies partly on leaked documents and notes that the detailed appendices to the Commission's decision have not yet been published. It is also not known publicly whether HMRC opened or resolved any investigation into these payments.
Manchester City maintain that they are innocent of the Premier League accusations and have announced that they will pursue the available appeal routes. Neidle nevertheless believes the nature of the alleged concealment warrants a criminal investigation to establish whether any tax-evasion offence was committed. It is worth noting that the Premier League says the question of sporting sanctions will be considered separately, while City have until October 2 to exercise their right of appeal against the Commission's findings.
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Steven Perez
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