From BBC Sport · · 1m 10s
Man City Tax Scrutiny After Verdict
Premier League verdict urges HMRC to review Manchester City's tax implications.
In brief
Premier League verdict urges HMRC to review Manchester City's tax implications. Manchester City's Premier League verdict requires HMRC to scrutinize tax implications of alleged £24m unpaid tax due to sham sponsorship deals. Originally reported by BBC Sport.
Premier League Verdict
The Premier League found Manchester City guilty of 114 of 115 financial regulation breaches between 2009-10 and 2017-18 seasons.
“Image source, Getty Images”
Tax Implications
HMRC is urged to scrutinize £12m unpaid tax and potential £24m penalty charge linked to sham sponsorship agreements.
“The Tax Policy Associates report claims City failed to pay as much as £12m in unpaid tax”
City's Appeal
Manchester City plans to appeal the verdict by Friday, claiming sponsorship deals were funded by Abu Dhabi government rather than club owners.
“City will claim as part of their appeal that key sponsorship deals were funded by the Abu Dhabi government”
Disguised Funding Scheme
The club argued that Abu Dhabi sponsors paid all recorded fees directly, with no involvement from Abu Dhabi United Group.
“City's case was that [it] had misunderstood how Abu Dhabi sponsorship agreements had been funded”
Commission Rejection
The independent commission rejected City's explanation as 'untrue', stating it was a post-event attempt to obscure the disguised funding scheme.
“We concluded that it was an 'explanation' that the club had concocted well after the event”
Abu Dhabi Connection
Manchester City chairman Khaldoon Al Mubarak is listed as an Emirati diplomat with diplomatic immunity under UK law.
“Al Mubarak is named as an Emirati diplomat on the UK government's current directory of all foreign representatives”
Etihad Legal Action
Etihad Airways plans legal action against Premier League over 'damaging implications' of commission findings despite not being named in redacted documents.
“Etihad Airways said it is considering legal action against the Premier League”
The headline
Manchester City's Premier League verdict requires HMRC to scrutinize tax implications of alleged £24m unpaid tax due to sham sponsorship deals.
