HMRC urged to scrutinise tax implications of Man City case

A parliamentary committee has called on His Majesty's Revenue and Customs to examine the tax consequences stemming from the Premier League's financial misconduct ruling against Manchester City.

The Treasury Committee, a cross-party panel of MPs responsible for monitoring the UK tax agency, has questioned whether officials have sought access to the unredacted documents referenced in an independent commission's findings. Dame Meg Hillier, who chairs the committee, formally requested reassurance that HMRC recognises the gravity and high public interest surrounding the case.

The intervention follows the decision by an independent regulatory commission, which determined that Manchester City breached league financial rules across multiple seasons spanning from 2009-10 to 2017-18. The panel found that the football club had intentionally inflated revenues via illegitimate sponsorship arrangements with assistance from its ownership, using financial manoeuvres to hide the true scale of liabilities.

Scrutiny on the tax dimension intensified after a report by think tank Tax Policy Associates suggested that Manchester City could owe as much as £12 million in unpaid income tax and National Insurance related to an arrangement involving former manager Roberto Mancini. The report highlighted that accompanying penalty fees could push the total potential liabilities up to £24 million.

Manchester City have consistently rejected the allegations and intend to challenge the verdict through an appeal. Club executives claim that the commission committed significant errors of law and fact, describing the ruling as unsafe.

During the initial hearing, the club maintained that payments linked to Abu Dhabi sponsors were legitimate commercial funds supported at times by state assistance, rather than concealed subsidies from owner Sheikh Mansour's private investment firm, Abu Dhabi United Group. The independent commission dismissed those assertions as untruthful and formulated after the fact to hide the underlying funding scheme.

The broader dispute has also drawn responses from commercial partners. State-owned carrier Etihad Airways, the club's main sponsor, stated that it strongly denies taking part in improper commercial transactions and indicated it is weighing potential legal steps against the Premier League over reputational harm caused by the published findings.

The Premier League has declined to comment on the matter, while City prepare their legal challenge. Separately, government records show that Manchester City chairman Khaldoon Al Mubarak is registered as a foreign diplomat in the UK, a status that confers legal immunities under the Diplomatic Privileges Act.