Treasury Committee demands HMRC answers on tax implications of Manchester City verdict

Treasury Committee chair Dame Meg Hillier MP has written to HMRC Permanent Secretary JP Marks about the tax implications of the Premier League’s independent commission verdict against Manchester City, published on Tuesday (Reuters).

Hillier asks whether HMRC is aware of the commission’s findings, whether it has requested or been provided with an unredacted copy of the report, and what assessments it has made of potential tax implications. She also requests “an overview of current HMRC work around football clubs”, including common issues around the taxation of remuneration (Reuters).

“While I acknowledge that taxpayer confidentiality may inhibit what you can disclose, I would welcome reassurance from HMRC that you are seized of the importance of these issues and the public interest in the case,” she wrote (Grimsby Live). The letter highlights the “sham” deal paying Roberto Mancini a tax-free £1.75m a year for four days of coaching at Al-Jazira — more than the £1.45m after tax City paid him officially. The panel found the payments were funded by Abu Dhabi United Group and were in fact extra remuneration (Scottish Sun). Mancini, 61, denies wrongdoing.

Hillier set a reply deadline of Thursday 15 October (Sky Sports). City deny wrongdoing and must lodge any appeal by Friday; the club said the decision contained “clear material errors, of law, principle and fact, and is unsafe” (Grimsby Live).