Implications of Redknapp acquittal
Paul Samrah, a partner at accountancy concern Kingston Smith spoke to Taxguide.co.uk to discuss the issues regarding Harry Redknapp's acquittal on charges on tax evasion.
Redknapp - who faced trial concerning two payments made to him by Serbian tycoon Milan Mandaric while he served as manager at Portsmouth - was accused by the court of evading tax on payments totalling £189,000 that were deposited into an offshore bank account based in Monaco. The Monaco account was kept secret from his accountant for four and a half years.
Samrah noted the trial 'concerned whether or not it was a gift or a payment for services'. Samrah added that as there is 'no limit for gifts that are made outside of his employment' the matter would then relate to inheritance tax.
Taxguide.co.uk notes that a donor must live seven years after a gift to avoid the recipient being charged inheritance tax and that the tax-free limit currently stands at £325,000
Samrah also opined on the difference between tax avoidance (which is legal) and tax evasion. 'Avoidance is taking advantage of legislation and can range from the very simple to the very complex'.
'Tax evasion on the other hand is where you blatantly lie or are deceitful and are concealing monies that should be subject to taxation'.