More garbage from the notw.

[wabashcannonball 0]

Rangers cash crisis escalates

 

TAXMAN SENDS IBROX CLUB A BILL FOR �£24MILLION

 

By James Douglas, 16/05/2010

 

THE full extent of Rangers' horror cash crisis can today be laid bare by the News of the World.

 

We can reveal the taxman stunned the club this week by sending them a demand for �£24MILLION.

 

But senior Ibrox figures fear that the final bill - if interest and penalties are added in - could top a massive �£54m.

 

The SPL champions have already lodged an appeal against the decision, which could send their debts soaring to a colossal �£80m.

 

Officials are worried the hammer blow from Her Majesty's Revenue and Customs could make the club UNSELLABLE - and even push them towards ADMINISTRATION.

 

A fire sale of Gers first team stars is already being contemplated to lower costs and raise desperately-needed funds.

 

It could see midfielder Steven Davis, 25, going to Aston Villa, defender Kirk Broadfoot, 25, being signed by Dundee United, Blackpool snapping up striker Nacho Novo, 31, and Lee McCulloch, 32, going to Hannover.

 

Midfielders Steven Naismith, 23, and Kevin Thomson, 25, may be sold to Derby and Middlesbrough respectively.

 

And it is expected that top scorer Kris Boyd, 26, will join Birmingham City while young defender Danny Wilson, 18, will head for Liverpool in a �£3m deal.

 

But the impending player exodus could persuade manager Walter Smith, 62, (right) to quit the Old Firm giants this week.

 

He and assistant boss Ally McCoist, 47, are expected to clarify their futures within days, while coach Kenny McDowall, 46, has been tipped to take over as St Mirren boss.

 

Last night an Ibrox source told us: "'This tax bill is a catastrophe for us.

 

"We're already struggling to pay �£30m we owe the bank. Another �£50m could tip us in to the abyss of administration.'

 

"We've been hit with a �£24m 'assessment' from the taxman. The implications are HORRIFYING. The interest could be �£12m and there may also be a penalty element of between �£12 and 18m. This is a desperate situation."

 

The Scottish News of the World was the first paper to reveal the taxman's probe into offshore payments made to Gers stars over the past 10 years.

 

It's claimed they received "loans" from Employee Benefit Trusts (EBTs) administered by the club's parent company Murray International Holdings, owned by Sir David Murray. The taxman has also launched probes into the use of EBTs by a number of top English clubs.

 

Rangers will now plead their case at a Tier One Tax Tribunal, and may then appeal to an Upper Tribunal.

 

A legal source explained: "The entire process could take a YEAR to run its course. But if Rangers lose their case, they will have to pay �£24m, plus interest of around �£12m.

 

"And in cases like this HMRC typically add a penalty of 50 to 75 per cent of the initial assessment, so potentially that could take the total to about �£54m."

 

This week we put our explosive revelations to the Rangers chief executive Martin Bain.

 

We asked: "Did those in charge of Rangers IGNORE expert independent tax advice to avoid the use of Employee Benefit Trusts?"

 

Bain told us the Murray group handled all of this. He said the parent company had set up the EBT and that the Rangers EBT was a "sub trust". We also asked the Ibrox supremo: "Was this tax strategy of using EBTs restricted only to players at Rangers or did other employees benefit from this scheme?"

 

Bain told us "employees of the trust", not just players, benefited from this scheme.

 

When asked if HE had benefited from the trusts, Bain declined to comment. But later a senior Ibrox insider did not challenge our revelations that the club had been hit with a �£24m bill from HMRC.

 

He confirmed: "The taxman has raised an assessment for the club."

 

Last week we revealed that Bain had told pals Rangers were FINISHED unless a secret plan he was hatching worked.

 

It is believed that the situation at Ibrox is now so dire that members of the under-19 squad have been told to prepare for first team action next season.

 

Our club source told us: "We have an academy approach to football. New talent is coming through the ranks."

 

Tax insiders believe the Scottish champs may choose to delay their case in the hope a new billionaire owner will stump up the cash to rescue them.

 

But it is feared the club could go BUST if their debts hit �£80m - the figure Spanish giants Real Madrid paid to sign Cristiano Ronaldo from Manchester United last year.

 

But even that sum is dwarfed by the enormous �£135m debts run up by English side Portsmouth, who lost 1-0 to Chelsea in yesterday's FA Cup final.

 

The Premiership side were relegated after being fined 10 points for going into administration.

 

A debt repayment plan has been approved which will see them pay back 20p for every �£1 they owe.

 

English businessman Andrew Ellis is still mulling over a proposed takeover bid for Rangers.

 

But some business analysts reeckon it would suit a prospective buyer if the Ibrox club DID go into administration - so the new owner could pick up the club at a bargain price and start with ZERO debt and no outstanding tax bill.

 

Last night an Edinburgh-based accountant told us: "Rangers are in a tricky position. But they are such a massive club and a successful club, so that will help them.

 

"They just need the right recovery plan in place. Their next move is vital.

 

"Get it wrong, and the consequences could be massive for the club."

 

Last night Rangers winger DaMarcus Beasley, 28, told of his concerns about the Ibrox debt crisis. The American ace - who revealed this week via his TWITTER page that he was leaving the troubled Glasgow giants - said: "There is obviously a lot of talk about the financial problems at the club.

 

"Players hear about it just like everyone else and it is not a nice thing to be going on, especially for our fans who are always so loyal. They deserve more."

 

When is someone going to call time on these fukers.

Edited May 16, 2010 by Zappa

[Guest Flying Hippo]

The craziest part is where it claims Davis will join Aston Villa. O'Neill never picked him and then sold him to Fulham but he's going to re-sign him 3 years later? Aye ok

[metlika 0]

Did we do something to piss off the sun/notw? They seem to have an agenda of printing well to put it impolitely, bollocks.

 

3 stories in a week mentioning doom and gloom, wow. The previous 2 actually not happening so...

 

Oh and lets CAP things for good EFFECT.

Edited May 15, 2010 by metlika

[metlika 0]

The craziest part is where it claims Davis will join Aston Villa. O'Neill never picked him and then sold him to Fulham but he's going to re-sign him 3 years later? Aye ok

 

That craziest part is saying that most of our players will be joining other clubs when they haven't been linked to them at all. Dundee Utd for Broadfoot hah.

[Guest Flying Hippo]

Any article that names all the clubs the players are supposedly joining cannot be taken seriously

 

Naismith to Derby is like something just picked out of a hat

[craig 5,195]

Even if the liability were true (which I doubt it is), the notion of tagging on 12 mill in interest and 12-18 mill in penalties makes absolutely no sense. HMRC can be idiots at times - but were they to tag on the interest and penalties they run the risk of receiving next to nothing.

 

I have sat in meetings with these folks and for the "rank and file" they dont get it. They basically have a template that they work from - and this would be where the tag ons would come in. But even if the liability were factual (again, I reiterate, I cant see it being so) HMRC have an obligation to obtain the most they can on behalf of the taxpayer - if they tag on interest and penalties then they wouldnt, IMO, be acting in the best interests of the taxpayer.

 

Funny how, according to NOTW, Rangers are being hit with a multi-million tax assessment and yet no mention of any other UK team suffering the same fate.... even though those other teams (some very high profile teams) have operated the same Employee Trusts. One would think that if HMRC were to assess RFC on this then the others (Man U and Arsenal included I believe) would also be assessed..... why then no mention of these others - which would, more than likely, be a far higher amount in liability than RFC's is.

[wabashcannonball 0]

Just to add more negativity to the pot the SS hits us with.... http://scotlandonsunday.scotsman.com/rangersfc/Tom-English-39Some--consider.6297764.jp.... although I think there is simple truth in that article.

 

Grandson no.1 laughed at his auld granda last night...he of HMRC, reiterating the tax bollox was exactly that bollox, he tells me again that the subbie is liable for any shortfall under the terms of the sort of gadget Rangers get the subbie (player) to sign up to, fuk knows life is complicated enough wi' oot having to need a degree in financial skulduggery to support your team....:spl:

 

Same publisher different view. http://www.timesonline.co.uk/tol/sport/football/article7127776.ece

Edited May 16, 2010 by wabashcannonball

[maineflyer 0]

These articles are not written with us in mind. These are for the consumption and relief of the demoralised feenyan masses.

[26th of foot 5,822]

The forensics of this on going series of NotW articles, leads directly to Phil McGillivan.

[redford 0]

Rashellick quick news goes national.