Here at KinsellaTax, we believe in the phrase:
“You wait for one bus and three come along at once”.
This seems to be exactly the case when it comes to the new Revenue and Customs Prosecution Office (RCPO).
Formed in 2005, we haven’t generally heard about the RCPO or its cases, until now…
Last week we brought you the news that senior members of staff from the Revenue and Customs Prosecution Office were receiving bonus payments for meeting confiscation targets.
This seemed to result in HMRC tirelessly chasing taxpayers for payments; such as the pharmacist who was subject to a £212,000 confiscation order due to an over-declaration in VAT of £464 – a mark up of 456%
Well, it seems that the RCPO are at it again; this time chasing Harry Redknapp.
According to The Times, the Tottenham Hotspur manager is under investigation after being arrested in 2007 on suspicion of conspiracy to defraud and false accounting.
The RCPO is expected to announce this month whether they will charge Redknapp over ‘a discrepancy of around £10,000 in income tax.’
This is an unsurprising move by HMRC as high-profile cases like these, undoubtedly, attract lots of attention.
Cases like these can scare taxpayers into making voluntary disclosures to the Revenue or even to just send in cheques to the Revenue for unpaid taxes.
One wonders what confiscation order the RCPO will seek. Given the same mark up used in the pharmacist case then they will seek a conviction and order for £4,560,000 which is about half the value of Harry’s house in Poole.
The Times article reads:-
‘Harry Redknapp has engaged a leading barrister in view of possible pending legal action by the tax authorities.
The Tottenham Hotspur manager is under investigation after being arrested by City of London Police in November 2007 along with Milan Mandaric, the Leicester City and former Portsmouth chairman, and Peter Storrie, the Portsmouth chief executive, on suspicion of conspiracy to defraud and false accounting.
The case is with the Revenue and Customs Prosecutions Office, which is expected to charge Redknapp over what he described as a “discrepancy of around £10,000 in income tax”.
Sources suggest that the Redknapp camp believes that the case against him is not a strong one, but, should it proceed, it is believed that Jim Sturman QC would act for Redknapp. Sturman has considerable expertise in the football world, having represented a number of Premier League clubs and players. He has also done pro-bono work for non-League players.
The transfer of Peter Crouch from Portsmouth to Aston Villa for £5 million in March 2002 is understood to be the focus of the investigations. Redknapp, who had just become manager after a spell as director of football, is reported to have been paid a percentage of the fee by Mandaric. The inquiries have focused on the tax implications rather than any suggestion of fraud.
“I’ve paid £10 million in income tax in the past ten years” Redknapp has said. “It’s in dispute whether the money is owed, and I’ve been totally up front with everyone about this. I’m sick of it.”