Newcastle lose High Court challenge over documents seized by tax probe as club awaits outcome of fraud case
- Newcastle's St James' Park was raided in April by HM Revenue and Customs
- It was part of a probe into suspected income tax and National Insurance fraud
- Two judges rejected a challenge over the legality of the search-and-seize orders
Newcastle United have lost a High Court challenge over the seizure of documents by tax officials investigating the financial affairs of several football clubs.
St James' Park and West Ham United's ground were raided in April by HM Revenue and Customs (HMRC) as part of a probe into suspected income tax and National Insurance fraud.
Newcastle's managing director, Lee Charnley, whose home was also searched, was among a number of senior European football officials arrested and later released without charge.
Newcastle's St James' Park stadium was raided in April by HM Revenue and Customs
Business and financial records were seized, as well as computers and mobile phones belonging to the club, which recently secured promotion to the Premier League.
The HMRC investigation centres on football agents and payments made in transfer dealings between English and French clubs.
Two judges, sitting in London on Wednesday, rejected a challenge by Newcastle over the legality of search-and-seize orders obtained by HMRC from a judge at Leeds Crown Court.
Announcing the decision to dismiss the club's application for judicial review, Lord Justice Beatson and Mrs Justice Whipple ruled: 'The warrants were lawfully issued.'
Newcastle owner Mike Ashley (right) stands alongside Managing Director Lee Charnley
At a hearing in July, the judges heard argument on behalf of the club that no reasonable grounds existed for believing it had engaged in suspected tax fraud.
But HMRC argued in court that reasonable grounds existed for believing Newcastle United FC was 'knowingly involved' in a multimillion-pound tax fraud when club offices were raided.
Court orders have so far prevented HMRC officers from examining the seized material pending the outcome of the legal action.
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