Newcastle wins reprieve from VAT bill

English Newcastle United won a court battle against tax authorities, successfully appealing a more than GBP 500,000 VAT bill for agents' fees.

The High Court ruled that the case must be re-examined.

A VAT and duties tribunal ruled last August that the club was not entitled to reduce input tax for agent payments, arguing that agents were under the players' contracts and therefore the club was liable. Newcastle United countered that the agents actually represented the club, and that Newcastle United had control over the agent's services and the payments to them during contract negotiations.

"The ruling of the tribunal cannot be sustained, but neither its findings nor the material before me enable me to make a determination of the question of the existence of contracts," Judge Mann ruled. "The only satisfactory way in which the issues can be resolved is by my remitting the matter to the tribunal for further consideration of the relevant points on a case by case basis."

The case revolves around 24 player negotiations. The eventual ruling, after reconsideration, could have wide implications for most of Britain's biggest clubs.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.