Newcastle hit with demand for £3.2m over ‘deliberate’ failure to pay tax on transfers
Club owe HMRC £1.9m in tax and handed £1.25m penalty
TL;DR
- Newcastle United owes HM Revenue and Customs (HMRC) £3.2m, including £1.9m in tax and a £1.25m penalty.
- The demand is due to a "deliberate" failure to pay tax related to player transfers under former owner Mike Ashley.
- The issue is linked to Operation Loom, an HMRC investigation that involved a raid on the club's stadium in 2017.
- HMRC alleged the club used "sham" contracts to avoid taxes on player payments and agents' fees.
- While HMRC dropped criminal investigations in 2021, civil proceedings for "tax non-compliance of a serious nature" continued.
- A spokesperson for Mike Ashley stated there was no finding or admission of deliberate conduct and that the new owners reached a civil settlement.