The chairman of a cross-party group of MPs has called on His Majesty’s Revenue and Customs to examine the tax implications of the Premier League’s case against Manchester City.
City was found guilty of all charges relating to breaches of the league’s financial rules between the 2009-10 and 2017-18 seasons by an independent commission that prompted Dame Meg Hillier, chair of the Treasury Committee, to write to the tax authority. The club were found guilty of 114 of the 115 charges. City have repeatedly denied any wrongdoing and have indicated they will appeal by Friday.
The commission found the club artificially inflated revenue through “sham” sponsorship deals with the help of their owners, and “employed devices” to “cover the true scope of certain club liabilities”. The Treasury Committee, which scrutinizes HMRC, has asked whether the department has asked for the redacted documents in the commission's report. Hillier said she would “welcome reassurance from HMRC that you are seized of the significance of these issues and the public interest in this case”.
Her letter comes after a report by Tax Policy Associates which claimed the City failed to pay up to £12m in tax because of a “sham” contract with former manager Roberto Mancini. Income tax, National Insurance and a possible penalty could mean liabilities of up to £24m, the report said.
The City argument on appeal is expected to be that key sponsorship deals were paid for by the Abu Dhabi government rather than owners Abu Dhabi United Group. The Premier League claims ADUG topped up commercial deals in an £830.69m disguised funding scheme. Premier League rules permit state-owned bodies to sponsor clubs. The commission said City’s account was “false” and an explanation “manufactured long after the fact.”
Chairman Khaldoon Al Mubarak said there was “absolute evidence” of innocence. He is listed in the UK government’s directory of foreign representatives as an Emirati diplomat. Etihad Airways, the title sponsor, said it was considering legal action over the published findings and “categorically rejects” any suggestion it was involved in improper arrangements. The Premier League did not want to comment.



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