Redknapp begins trial for tax evasion

Football manager Harry Redknapp went on trial yesterday accused of receiving offshore bungs from his former employer.

The Tottenham Hotspur manager — tipped as a future England boss — dodged taxes on “substantial payments” while in charge at Portsmouth FC, a jury heard.

Redknapp stood accused of receiving two untaxed payments of over £189,000 from former chairman Milan Mandaric, his co-accused.

John Black opened the case at Southwark Crown Court by telling jurors “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, appearing behind bullet-proof glass alongside Mandaric, read notes as Black outlined how the manager received player transfer bonuses under a clause in his contract. Black focused on the purchase of Peter Crouch for £1.25m, who was sold for £4.5m.

Redknapp and Mandaric deny two counts of cheating revenue when he was manager of Portsmouth. The first charge alleges that between April 1, 2002, and Nov 28, 2007, Mandaric paid $145,000 into a bank account held by Redknapp in Monaco to avoid paying income tax and insurance.

The second charge for the same offence relates to a sum of $150,000 allegedly paid by Mandaric to the account between May 1, 2004, and Nov 28, 2007.

Redknapp first flew out to Monaco — a tax haven — in April 2002 to set up the account, it was claimed.

He named the HSBC account Rosie 47 — a reference to his dog’s name and the year of his birth.