16-05-2025
Struck-off solicitor behind Rangers EBT scheme hit with HMRC warning
Paul Baxendale-Walker has been issued with two Stop Notices and he has been told he faces penalties or criminal prosecution if he fails to comply.
It is the first time Stop Notices have been issued to an individual rather than to a company promoting tax avoidance schemes.
Baxendale-Walker was previously involved in advising Rangers about the football club's use of the EBT scheme.
HMRC believes both schemes covered by the Stop Notices involve artificial arrangements, including the use of offshore trusts, designed to claim tax deductions without genuine business purposes.
The schemes create complex structures to ensure money remains available to the users while claiming to avoid the tax due.
Jonathan Smith, HMRC's Director of Counter Avoidance, said: "The courts have already concluded that Mr Baxendale-Walker designed and sold multiple tax avoidance schemes that don't work as claimed, and now these Stop Notices send a clear message that we'll use every tool at our disposal to protect public finances from tax avoidance schemes."
Baxendale-Walker was first struck-off as a solicitor in 2007 after a disciplinary tribunal, before going on to become a self-proclaimed 'porn baron'.
He also bought over the 'lads magazine' Loaded in 2012 and at the time he told the press he 'lived the Loaded lifestyle - girls, cars, money, helicopters and fun, fun, fun' before the magazine collapsed in 2015.
It was revealed he was the man who introduced Sir David Murray to the EBT scheme that was used by Rangers, which resulted in the so-called 'Big Tax Case' against the company.
Two tribunals in 2012 and 2014 initially supported the Rangers argument that the EBT payments were loans and therefore not taxable, but the Court of Session found in favour of HMRC after an appeal in 2015.
Paul Baxendale-Walker has been contacted for comment.
