Redknapp tax evasion trial - day two LIVE
Published 10:49 24/01/12 By MirrorFootball
Harry Redknapp is in court this week accused of two counts of cheating the public revenue when he was manager of Portsmouth. He is accused alongside the then Portsmouth chairman Milan Mandaric.
Both men deny the charges and a two-week trial began at Southwark Crown Court on Monday morning.
This page will be updated throughout the day as more details emerge.
Day Two LIVE:
5.09pm via Twitter
The Mirror's Martin Lipton (@MartinLipton) says: Prosecution case barely begun. No witnesses called yet. Defence will follow after but can cross-examine all pros witnesses
5.03pm via Twitter
The Mirror's Martin Lipton (@MartinLipton) says: IF convicted, maximum sentence of seven years (but would not get that). Could be jailed, suspended sentence, fine
5.02pm via Twitter
The Mirror's Martin Lipton (@MartinLipton) says: ....Redknapp insisted money was due on PFC contrract as Dir of Football for profit on Peter Crouch, Mandaric came up with offshore idea
5.01pm via Twitter
The Mirror's Martin Lipton (@MartinLipton) says: Redknapp day two: Long. Very long. Seemed somewhat repetitive. Basic claim: Redknap hid existence of Monaco a/c for six years...
Milan Mandaric tried to fool police into believing bungs sent to Harry Redknapp were a tax-free loan, a court heard today.
The former Portsmouth chairman asked Redknapp to repay about £100,000 in 2009 - weeks after giving no comment during questioning by detectives.
The "transparent device" by Mandaric came after the Tottenham manager told officers "I don't fiddle", the Crown alleges.
Mandaric told City of London Police he "didn't want to be a loser in Harry's eyes in the investment world", a jury at Southwark Crown Court heard.
John Black QC, for the prosecution, said Mandaric's lawyer sent a letter to Redknapp's solicitors a month after the chairman had given no comment to officers on June 8 2009.
The letter said: "Mr Mandaric requests that 145,000 US dollars is repaid by Harry as soon as he is able to arrange it, to Mr Mandaric's following account."
Black added: "The Crown suggest this could be a transparent device by Mr Mandaric to attempt to create an impression that the money paid by Mr Mandaric into the Rosie 47 account had only ever been advanced by way of a loan."
Mandaric and Redknapp deny two counts of cheating the public revenue.
4.30pm via Twitter
The BBC's James Pearce (@Pearcesport) says: Early finish today. Redknapp/Mandaric jury sent home for night with usual warning about not researching on Internet. We resume 10am tomorrow
Milan Mandaric told Harry Redknapp "there is no tax" as the manager expressed concern over the Monaco bank account, the court heard today.
Redknapp claimed he confronted his then chairman after Portsmouth secured Premier League survival with an away win at Blackburn Rovers in 2004.
Redknapp thought it would be a good idea to raise the "investment" as they drank wine at an airport, the manager told officers in June 2009.
Mandaric was said to have told Redknapp: "Harry, there is no tax. I've paid the tax. There is no tax for you."
Regarding the state of the "investment", Mandaric was alleged to say: "Disaster, disaster. Got wiped out. There's still a little bit in there."
Redknapp told officers he did not press the issue as Mandaric "wasn't a man to argue with", jurors at Southwark Crown Court heard.
The Tottenham Hotspur boss said during the interview: "I want my money paid here. If I don't go with, you know, I'm not going to get my money anywhere."
Redknapp went on to tell detectives that "Milan, not me" had control over the Rosie 47 account.
"He must have had control of that bank account, you know," Redknapp said.
Regarding finances at Portsmouth, Redknapp was said to have told police: "There was a big problem on cash-flow - the club was late on wages."
Both Redknapp and Mandaric deny two counts of cheating the public revenue over payments worth £189,000.
1.40pm - Catching up with more of the morning's evidence:
Redknapp's account differed from what Mandaric told Mr Beasley on February 26 2009, the Crown claim.
Mandaric was said to have told Mr Beasley that the payments to the Monaco account were nothing to do with Portsmouth securing promotion to the Premier League.
The transcript said: "This is the money for my investment... a way to help Harry for the investment... we had become friends."
He added: "Rob, as I told you, it was nothing wrong. It was something I did for my friend... away from football."
Mandaric said he had "paid him a million or whatever it was I paid him" for Portsmouth's success on the pitch.
He added: "There was a contract and what I did for him was nothing to do with this."
As Mr Beasley told Redknapp what Mandaric had said, the manager said: "Well, if that's what he said, then he is wrong."
Redknapp added: "What people don't seem to understand - this money was paid by Milan in his American account... It was a bonus I was due."
Redknapp declared his Monaco account to inspectors less than two weeks before joining Spurs, the prosecution allege.
Redknapp subsequently told police "I don't fiddle", the court heard.
John Black QC, prosecuting, read out an interview which took place with a detective four months later in June.
Redknapp was said to have told a detective: "I said to him many, many times 'Milan, I don't want to end up with a tax bill'.
"I was told I wasn't liable for income tax on so many occasions."
Redknapp added: "For the sake of that amount of money or any amount of money, I don't fiddle.
"I pay my tax since I have been in football my entire life.
"I pay every penny."
Trial has now broken for lunch. Will resume at 2pm.
1.04pm from the Press Association:
Redknapp said "there ain't nothing crooked in it" as the telephone conversation went on, the court heard.
"Don't say bung," Redknapp said. "It's nothing to do with a bung. It's paid by the chairman.
"How can it be a bung when the chairman of the football club paid me?"
He added: "What's a bung? It's a f****** sick word."
According to the transcript, he told Mandaric: "I don't want to have a problem with the tax man."
"They was aware of it from day one," he added.
When asked about the bonus clause in his contract, Redknapp said: "My accountant has got my contract ... I'm not going to f****** show you."
He added: "The Inland Revenue know all about it. I've got nothing to defend, Rob.
"I ain't done nothing wrong ... I ain't done nothing wrong, Rob. I got paid a bonus ... everyone is aware of it."
He later added: "Everyone knows about it, there ain't nothing crooked in it."
12.53pm from the Press Association:
Mr Beasley spoke to Redknapp days after a telephone interview with Mandaric, the former Portsmouth FC chairman.
When Mr Beasley described how Mandaric said the money sent to Redknapp's offshore accounts were investments outside football, the Tottenham Hotspur manager replied: "He don't know what he is f****** talking about. What is he talking about? It is a bonus."
Explaining that the payments surrounded profit made on the sale of Peter Crouch from Portsmouth to Aston Villa, Redknapp added: "If it was something dodgy I would have gone over there and brought it back in a briefcase."
When Beasley asked him whether he had paid any tax in the UK on it, Redknapp replied: "Haven't been asked to, Rob."
12.48pm from the Press Association:
Redknapp threatened to "sue the b******s" off a journalist as he angrily denied taking bungs, the court heard today.
The Tottenham Hotspur manager also said Milan Mandaric "don't know what he is f****** talking about" in a 2009 telephone conversation with a News of the World reporter.
In short extracts read out to a jury at Southwark Crown Court, Redknapp told Rob Beasley he had "the best accountants in England", claiming the Inland Revenue was fully aware of his dealings in Monaco.
11.53am via Twitter:
@MartinLipton: Judge has ordered no Tweeting of court proceedings in Redknapp trial
11.27: From the Press Association
Mr Black urged jurors to consider "had Mr Redknapp really forgotten that he had flown to Monaco to set up the account?"
He showed the panel a string of letters between lawyers in the wake of Redknapp's arrest.
The first mention of the offshore account came when Mandaric was asked by the Quest inquiry to provide details of payments to Redknapp, Mr Black said.
"It's clear that it was only at this time that Mr Redknapp brought to the attention the existence of the Monaco bank account, feigning almost total ignorance of its existence, its operation and its contents," he added.
10.59: from the Press Association
Tax inspectors were informed of the bank account "only within the context to declare a small amount of credit interest" in 2008, Mr Black said.
Mr Black showed the jury of eight men and four women newspaper cuttings from 2003, which detailed Redknapp had received a £300,000 gift for the £18 million transfer of Ferdinand to Leeds United.
Redknapp - who had managed West Ham before joining Portsmouth - was said to have described the cash he received as a "personal present".
Mr Black said the fact Redknapp paid tax on the gift was proof he knew future payments would be tax liable.
The Tottenham Hotspur manager is accused of banking transfer bonuses worth £189,000 during his time managing Portsmouth.
One of the payments was said to have been sparked by the £3 million profit the South Coast club made on the sale of England star Peter Crouch.
10.47: from the Press Association
Redknapp failed to declare his offshore bank account for six years after "feigning" ignorance during a high profile inquiry into football bungs, the court was told this morning.
He previously only mentioned the Monaco account as he was quizzed during the Premier League-led investigation, jurors were told.
John Black QC, prosecuting, said Redknapp "was feigning almost complete ignorance of its existence" as the Quest inquiry under former Metropolitan Police Commissioner Lord Stevens took place in 2006.
Mr Black asked jurors to consider whether "is it the case that Mr Redknapp could be unaware of the bank account" when he had flown out to Monaco just a couple of years earlier to set it up in the name of his dog, Rosie.
Despite two separate inquiries into his finances - the first launched in the wake of his receipt of a £300,000 "gift" after Rio Ferdinand signed for Leeds United from West Ham - Redknapp only registered the account to tax inspectors after his arrest in 2008.
Mr Black told Southwark Crown Court: "The existence of the bank account was not registered to Revenue and Customs for a period of six years, two months... after Mr Redknapp was first arrested and questioned in the course of this investigation."
10.46am via Twitter:
From the Daily Mirror's chief sports writer @OllieHoltMirror: Enthralling day at Southwark Crown Court yesterday for the Redknapp-Mandaric trial. Have handed over to the estimable @MartinLipton today
From the Daily Mirror's chief football writer @MartinLipton: Heading for Southwark Cr Ct for first day of evidence in Redknapp/Mandaric trial. Some interest...
This page will be updated throughout the day as more details emerge.
Prosecutors accusing Tottenham manager Harry Redknapp of taking bungs in an offshore tax dodge will today call their first witnesses.
Redknapp banked transfer bonuses worth £189,000 in a Monaco account named after his pet dog, Rosie, jurors heard.
One of the payments during his time at Portsmouth was over the £3 million profit the club made on the sale of England star Peter Crouch, prosecutors claim.
Prosecutor John Black QC will complete his opening statement to the jury before calling the first witnesses at Southwark Crown Court.
Redknapp was accused yesterday of being a "hard-headed businessman" who, alongside co-defendant Milan Mandaric, obscured the money trail for years.
Redknapp failed to tell investigators about the Monaco account as tax officials probed a previous £300,000 payment he received over Rio Ferdinand's record-breaking transfer between West Ham United and Leeds, it was claimed.
Details of Redknapp's private financial dealings as a manager were laid bare as the man widely tipped as England's next football manager appeared in the dock at Southwark Crown Court.
Opening the case, Mr Black said: "The Crown's case is that the money transfers to the offshore Monaco account were deliberately and dishonestly paid by Mr Mandaric, and deliberately and dishonestly received by Mr Redknapp, with the intention of concealing them from the authorities and the payment of tax."
Mr Black said "both parties must have known" they were avoiding taxes.
"These payments were a bung or offshore bonus that the parties had absolutely no intention of paying taxes for," he said.
Redknapp's "widespread popularity" was singled out by the prosecution.
"He is currently enjoying what may be described as footballing success," Mr Black said, referring to Tottenham's current standing as third in the Premier League.
The manager is "unusually talented" and "Harry Redknapp was, it goes without saying, no ordinary employee", he said.
But the barrister added: "Talented and popular he might have been, the Crown say he was nevertheless a hard-headed businessman, with a financial acumen and pecuniary sense of his influence to his employers."
Redknapp first flew out to Monaco - a tax haven - in April 2002 to set up the account, the Crown claims.
He named the HSBC account Rosie 47 - a reference to his dog's name and the year of his birth, the court heard.
"He flew to Monaco for the specific purpose of setting up a secret account, into which the off-the-record payments could be received," Mr Black said.
Mr Black said the first time the British authorities knew of the Monaco account was in November 2006.
"It's significant, the Crown suggests, that the bank account opened by Mr Redknapp was located in an offshore tax haven.
"The Crown suggests this was quite deliberate and was intended to obscure and to render less transparent the nature of the money payments."
Redknapp and Mandaric deny two counts of cheating the public revenue when he was manager of Portsmouth Football Club.
The first charge of cheating the public revenue alleges that between April 1 2002 and November 28 2007 Mandaric paid 145,000 US dollars (£93,100) into the account.
The second charge for the same offence relates to a sum of 150,000 US dollars (£96,300) allegedly paid between May 1 2004 and November 28 2007.
Redknapp, 64, who underwent minor heart surgery last year to unblock his arteries, is the most successful English manager in the modern game, having led Portsmouth to FA Cup success and Spurs to last season's Uefa Champions League quarter-finals.
Serbian Mandaric, 73, is now chairman of Sheffield Wednesday, having previously worked at Leicester City.