Glaws CE insists Saracens should feel 'full force of points deduction'

[mike909]

Loan includes quite a wide range of financial arrangements including investment in company

Any loan (other than an overdraft or credit card account) to an individual
used for purchase of:
(a) an interest in a partnership, or contribution of capital or advance to
a trading or professional partnership, in which (in either case) the
borrower is an active participant, or
(b) ordinary share capital in a close company or making a loan of
money to such a company for use in its business, or in an associated
company’s business, provided the borrower either owns more than
5% of the ordinary share capital or owns some share capital and
works in the management of the company for the greater part of his
or her time

From the tax regs....we need a tax expert - but my reading would suggest that gaining value in a company, financed by someone else could be defined quite widely as a "loan" or similar. If its not a loan its a gift....i.e. "pay" for being an estate agent?

[BG]

Tax rules aren't PRL rules. I doubt HMRC have any problem with what Wray has done as long as the Ltd companies, where the players are directors, pay the correct tax. I doubt they are stupid enough not to do so.

The question is whether what has been setup is deemed to be breaking the rules written by PRL... and from the deafening silence PRL might now realise they didn't quite get the wording of the rules correctly.. maybe the didn't think a club would be so blatant.

I don't think that matters as this isn't a legal matter, if enough of the remaining 12 PRL clubs feel like the PRL management can't administer the league that the clubs signed up for then something will change.

There are a few possible outcomes the worst of which will be a green light to clubs to follow suit. As far as I'm aware only Bath and Bristol can compete with Nigel Wray and his finances

[mike909]

BG - good post and of course correct. I was trying to relate the Tax Office definitions to those included by PRL - I'd expect Sarries to have taken advice - these are benefits that are only available to their players and clearly designed (not by accident) to get around the regulations

My experience in accounting regs suggests that its rarely 100% "correct" and that one team can use it to effectively play now with Daly, 7 or 8 Lions starters, suggests this isn't a level playing field.

Change is required and no to a free for all