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The offices of Newcastle and West Ham were raided by tax officials yesterday as part of an Anglo-French investigation into a suspected £5 million fraud related to player transfers.
The co-ordinated raids, which included premises in France, saw several men arrested, including Newcastle’s managing director Lee Charnley.
A spokesperson for HM Revenue and Customs (HMRC) said they had: “arrested several men working within the professional football industry for a suspected £5m income tax and national insurance fraud.
“180 HMRC officers have been deployed across Britain and France today. Investigators have searched a number of premises in the north-east and south-east of England and arrested the men and also seized business records, financial records, computers and mobile phones.
“This criminal investigation sends a clear message that, whoever you are, if you commit tax fraud you can expect to face the consequences.”
A West Ham spokesperson confirmed the club’s offices at the London Stadium were raided by HMRC officers and said the Premier League side was “co-operating fully” with the investigation.
There has been no official confirmation from Newcastle yet, but it is understood that St James’ Park was raided and Charnley arrested.
The Hammers are currently 14th in the Premier League table, seven points above the relegation zone, after an eventful first season at the London Stadium.
The news of the dramatic raids came shortly after Newcastle’s return to the Premier League was confirmed with a 4-1 win over Preston on Monday.
Andy Wood, a director at Enterprise Tax Consultants, believes the dramatic action by HMRC reveals just how keen the authorities are to make examples of those suspected of tax dodging.
Wood said: “In my opinion, HMRC is being very bold in describing this as fraud from the outset, as that is a criminal offence and potentially carries severe penalties for individuals whom it can prove have been guilty of such activity.
“However, the Revenue has not been shy of late in making clear its desire to tackle high-profile figures and companies whom it believes are avoiding or evading tax, partly because of the deterrent effect.
“In football, that has been certainly the case following HMRC’s clamping down on the use of employee benefit trusts of the sort which were at the heart of Rangers’ liquidation in 2012.
“As well as HMRC getting tougher with those even suspected of impropriety, the investigation involving Newcastle and West Ham provides yet more evidence of how its international reach in trying to bring tax evaders to book is continually being increased by co-operation with foreign tax authorities.”
