Treasury Committee asks HMRC to examine tax implications of City verdict

Treasury Committee chair Dame Meg Hillier has written to HMRC seeking scrutiny of the tax implications arising from the Premier League financial case against Manchester City, BBC Sport reported on Thursday. Her intervention follows the publication of findings by an independent commission, with the club continuing to deny wrongdoing and indicating that it intends to appeal by Friday.

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The committee, which oversees HMRC's policies and administration, has asked whether the tax authority has sought documents redacted from the published commission report. Hillier also sought assurance that HMRC recognised the importance of the issues and the public interest involved. The reported letter is a request for scrutiny; it does not establish that the authority has opened a tax investigation or reached any conclusions.

According to BBC Sport, the commission found City guilty of financial-rule breaches covering the seasons from 2009-10 to 2017-18. Its findings, confirmed on Tuesday, said sponsorship arrangements had been used to inflate revenue artificially with assistance from the club's owners. It also found that City had concealed the full extent of some liabilities, providing the background to the committee's questions.

A central dispute concerns the origin of money used to support commercial agreements. The commission identified a disguised funding arrangement involving £830.69m, attributing the sponsorship top-ups to Abu Dhabi United Group, the private investment company owned by Sheikh Mansour. The arrangement was said to have allowed City to appear compliant with Premier League and Uefa financial regulations.

BBC Sport reported that City are expected to argue on appeal that the money instead came from the Abu Dhabi government. The commission rejected that explanation in its findings. City, meanwhile, maintain that the decision contains significant legal and factual errors. Their position remains a challenge to the ruling, rather than an accepted revision of the commission's conclusions.

The dispute has also drawn a response from principal sponsor Etihad Airways. The airline said it was considering legal action against the Premier League over the publication of the findings and denied involvement in improper commercial arrangements. BBC Sport said the Premier League declined to comment when approached.