UK Parliament told answers on tax implications are needed in Manchester City ruling
Summary
The UK Parliament’s Treasury Committee has asked the country’s tax authority, HM Revenue and Customs (HMRC), to explain its response to the Premier League’s ruling against Manchester City. The Premier League found that Manchester City broke rules by using fake contracts to hide over £900 million in revenue and costs over many years.Key Facts
- The Premier League said Manchester City used fake commercial contracts to hide financial information.
- This hiding of money was worth more than £900 million (about $1.2 billion) over nearly a decade.
- An independent commission found Manchester City broke over 100 Premier League rules during many seasons.
- Meg Hillier, chair of the UK Treasury Committee, wrote to HMRC asking what it is doing about these findings.
- Hillier wants to know if HMRC has reviewed the full report and its tax consequences.
- HMRC can investigate and penalize companies for false tax information, but City’s case is unusual because it made them appear more profitable, which usually means paying more tax.
- Hillier also asked HMRC about common tax problems among football clubs and how it deals with them.
- Manchester City denies any wrongdoing and plans to appeal the ruling.
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