Administrators think we (may) owe HMRC some 94m ... or 21m

[der Berliner 3,249]

It is a touch strange how these press people work their headlines out ... but sure not surpirsing:

 

Rangers' administrators estimate final tax bill owed to HMRC to be £94.4m

 

Oldco Rangers owe the tax authorities an estimated final total bill of £94.4m, according to administrators.

 

The tax liability run up by the company, which should be liquidated later this month, was listed in a final report to creditors by Duff and Phelps.

 

According to the estimate, which the insolvency practitioners said it had listed for "voting purposes" for HM Revenue and Customs (HMRC) in the company voluntary liquidation this month, the 'big' tax case against the oldco will result in a £73m liability.

 

This, combined with the £3m outstanding for the 'wee' tax case and £18m of unpaid PAYE and national insurance built up during Craig Whyte’s reign at Ibrox, brings the total tax liability to around £94.4m.

 

The result of the big tax case, which relates to Rangers’ use of offshore employee benefit trusts (EBTs) to pay players and directors from 2001-2010 under Sir David Murray’s stewardship, has still not been decided by the first tier tax tribunal, although it is expected later this month.

 

Duff and Phelps, which was appointed as administrators of what was then The Rangers Football Club plc on February 14, believe it will be paid a total of around £3m for its time overseeing the insolvency.

 

Included in this bill is £104,000 towards funding a company voluntary arrangement (CVA) pence in the pound offer to creditors, which was destined to fail because of HMRC’s voting rights and the authority's public policy of refusing such deals when offered by those who persistently fail to pay tax.

 

Creditors are asked to vote on the proposals to conclude the administration by October 12. If the resolutions are approved, including authorizing a final payment of around £400,000 to Duff and Phelps after it received £2.7m in August, the firm will lodge a court order to appoint neutral insolvency practitioners BDO to oversee the liquidation of the company.

 

BDO has been lined up to take over the liquidation at the insistence of biggest creditor HMRC after Duff and Phelps had originally stated its intent to oversee the winding up of what was renamed RFC 2012 plc in recent months following the asset sale to Sevco consortium-owned newco in June.

 

There's nothing been decided and the 94m figure is just used for purpose of this record, so it could be anything from the money actually owed by Whyte to that and Ticketus and HMRC and whatnot. But that grand figure sure makes the best dire reading for all concerned. I for one can't see BDO taking over and winding up the oldco before any decsision is being made on the big case and all scheduled transfer fees have been collected (Jelavic to Everton).

 

Obviously, it is apparently a fact that we "paid" players "contract-wise" via the EBT thing.

Edited October 1, 2012 by der Berliner

[andy steel 0]

<groan>

 

not this again

[der Berliner 3,249]

Alas, it is all drawing to a close.

[frost 0]

Strangely this was only an estimate that ensured HMRC voting rights of more than 75%, something I believe the liquidators should scrutinise closely, it is almost as if the admin ensured there would be no CVA.

[Tumshie RFC 0]

I remember being on here and many of us were delighted when Whyte was given the chance to name his own administrators rather than HMRC. Seems like a lifetime ago.

[BeardyGuts 6]

I don't know how anyone else feels about this but regardless what the final tax bill is part of me will always feel pissed off that we will never have the chance to pay it off. It just doesn't sit right with me not being able to pay off our creditors and tax payers, small business etc being out of pocket because of two idiot owners.

[der Berliner 3,249]

I don't know how anyone else feels about this but regardless what the final tax bill is part of me will always feel pissed off that we will never have the chance to pay it off. It just doesn't sit right with me not being able to pay off our creditors and tax payers, small business etc being out of pocket because of two idiot owners.

 

I can see the sentiment involved, but the reason is IMHO wrong. HMRC et al knew exactly what we did and if there was anything wrong with the EBTs, it was probably a technicality. A technicality that hundreds of other companies probably never encountered and still used EBTs to do what we did. (If we "did" anything "wrong" at the time.) 9 years after our first usage of EBTs they were ruled "illegal" and so be it. Up till then, as far as I see it, we did not willfully or purposefully do anything wrong that can be held against us. And I for one hope that this is being made clear this months - or those responsible make sure that our name stays untarnished.

 

We should always make it very clear that Rangers FC went into administration over the tax and insurance debt accumulated by Craig Whyte, those 18m listed above. Not a penny more.

 

And thanks to impartial reporting, this is what will go around the world as fact for the next day or two:

 

BBC Sportsound ‏@bbcsportsound

 

Rangers' final tax bill tops £94m: The old Rangers Football Club owed more than £94m in unpaid tax and penalties... http://bbc.in/Qia16c

Retweetet von Alasdair Lamont

Edited October 1, 2012 by der Berliner

[der Berliner 3,249]

We should simply ban this lot for the rest of the season because of negative, non-impartial and malcontent reporting.

[forlanssister 3,050]

Alas, it is all drawing to a close.

 

Far from closed the act of liquidation will probably take years.

[simplythebest 0]

Far from closed the act of liquidation will probably take years.

 

Doesn't effect us now mind, hopefully just some individuals of the past.