The Treasury Committee has written to the chief executive of HM Revenue and Customs (HMRC) to ask about the tax implications of the Premier League’s investigation into Manchester City.
HMRC could investigate whether City paid the right amount of tax and national insurance during the nine seasons they have been found guilty of financial rule breaches.
In the letter, Dame Meg Hillier MP asks JP Marks, permanent secretary of HMRC, whether the department has received an unredacted version of the Premier League’s report and requests “reassurance from HMRC that you are seized of the importance of these issues and the public interest in the case”.
Hillier also says she would welcome an “overview of current HMRC work around football clubs.”
The letter reads: “I would be interested in any common issues around taxation (including the taxation of remuneration) that you have found in their practices and how HMRC is tackling them.”
The deadline for a reply is set at Thursday October 15.
Man City continue to deny wrongdoing and plan to launch an appeal against the verdict, which they must do by Friday.
The Premier League investigation into City was triggered by the publication of hacked internal emails in the German magazine Der Spiegel in 2018.
Der Spiegel said it had evidence which appeared to show that Roberto Mancini, who was City manager from 2009 to 2013, had a secret second contract.
As well as being paid £1.45m net by City, a company connected to him in Italy was being paid £1.75m for a four-day annual coaching consultancy commitment at Abu Dhabi-based UAE Pro League club Al Jazira.
Analysis: What are the tax implications of Man City’s guilty judgement?
Sky Sports News’ Kaveh Solhekol:
“The Treasury Committee have written to HMRC to ask about the tax implications of the Premier League’s investigation into Manchester City.
“For instance, HMRC could investigate to see if City have been paying the right amount of tax over the nine seasons when they have been found guilty of breaking the Premier League’s financial rules.
“The investigation into Manchester City was triggered by some hacked internal emails which were published by Der Speigel in 2018.
“According to Der Speigel, some of those emails appeared to show that former manager Roberto Mancini had two contracts. One for managing Manchester City, for which he was paid £1.45m, and a second contract whereby £1.75m was being paid per year to a company associated with him.
“I perhaps think what the Treasury Committe are getting at is just making sure that HMRC is going to be looking into this. Potentially, is this a case where the right amount of tax and national insurance wasn’t paid?
“The Treasury Committee also ask [in their letter] for reassurances that the department has seized the importance of the case.”
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