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

[frost 0]

Lord Hodge and the appointed liquidators are the experts, they have the powers and far reaching ones at that.

 

On another tac, disgraceful comments being made on clyde by hannah about robbing the schools and hospitals of tax funding, ably assisted by the usual **** bastards.

[Thinker 873]

Lord Hodge and the appointed liquidators are the experts, they have the powers and far reaching ones at that.

 

On another tac, disgraceful comments being made on clyde by hannah about robbing the schools and hospitals of tax funding, ably assisted by the usual **** bastards.

 

This seems to be the latest line of attack. They're concentrating more on the immorality of minimising tax rather than the illegality.

 

There are many, many examples of tax avoidance at other clubs they could look at. The image rights argument in Traynor's article, and direct dodgy "film company" scams perpetrated by some high profile individuals across the city. I suppose that's different somehow...

[simplythebest 0]

Where's the morality about all the childhoods Celtic stole?

[forlanssister 3,050]

Where's the morality about all the childhoods Celtic stole?

 

In the same place as the morality of Dundee X2, Livingston X2, Airdrie, Gretna et al.

[frost 0]

There is something disquieting about the wording of this short paragraph, either that or someone requires lessons in English.

 

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.

[Thinker 873]

There is something disquieting about the wording of this short paragraph, either that or someone requires lessons in English.

 

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.

 

Hmmmmm. I don't see how that could be anything other than a worst-case figure.

 

Possibly the wishful thinking of an author who wants a worst-case result making it's way onto the page?

[frost 0]

Hmmmmm. I don't see how that could be anything other than a worst-case figure.

 

Possibly the wishful thinking of an author who wants a worst-case result making it's way onto the page?

 

The author is Duff and Phelps their statement by using the word will appears to pre-empt an outcome not in our favour, why the did not preface liability with possible is beyond me.

[Thinker 873]

The author is Duff and Phelps their statement by using the word will appears to pre-empt an outcome not in our favour, why the did not preface liability with possible is beyond me.

 

If that's taken verbatim from their report then you're right - it's worrying.... :0/

[der Berliner 3,249]

IMHO, it is still a technicality to make/keep HMRC as the highest creditor and use the worst-case scenario to do so. I doubt that they have privy to any outcome ahead of anyone else, as this is an official inquiry where results are open to all from the day they are known?

[aftershock 0]

From the BBC News site:

 

The old Rangers Football Club owed more than £94m in unpaid tax and penalties, according to its administrators.

 

The final report to creditors from Duff and Phelps reveals that the size of HM Revenue and Customs claim against the club totalled £94,426,217.

 

It also shows that the administrators are claiming £3,121,683 in fees.

 

Creditors have until 12 October to vote on the report. When the administration period ends, the old Rangers FC will be placed in the hands of liquidators BDO.

 

Rangers was forced into administration by HM Revenue and Customs (HMRC) on 14 February over non-payment of tax totalling about £14m.

 

Third Division

 

Craig Whyte, who bought the club from Sir David Murray last year, was successful in having his nominated firm, Duff and Phelps, appointed.

 

Continue reading the main story

Rangers crisis explained

Rangers went into administration owing up to £134m to unsecured creditors.

As a result its registrations with the Scottish FA and Scottish Premier League were terminated.

Charles Green led a consortium which bought Rangers' assets for £5.5m.

The former Sheffield United chief executive reformed Rangers as a new company.

The 'newco' did not get the required votes for re-admittance to the SPL and started life in Scottish Division Three.

 

Following a hearing at the Court of Session, David Whitehouse and Paul Clark were appointed as joint administrators of the club.

 

After HMRC rejected proposals for a creditors agreement that would have allowed the old club to continue, Duff and Phelps negotiated a sale of assets to a consortium led by Charles Green for £5.5m.

 

He has since formed a new club which is playing in the Scottish Football League Third Division.

 

In its final report to creditors, Duff and Phelps states: "The joint administrators have continued to review the claims made by HMRC in the administration.

 

"The claims are largely made up of determinations issued by HMRC in accordance with Regulation 80, penalties and outstanding PAYE/NIC.

 

"The joint administrators have adjudicated on these claims and confirmed to HMRC that for voting purposes, their claim will be admitted for voting purposes at £94,426,217.22."

 

The majority of that figure relates to the old club's use of Employee Benefit Trusts (EBTs), on which HMRC claimed unpaid tax and penalties in excess of £49m.

 

October judgement

 

A judgement on an appeal of this assessment, which was heard at a First Tier Tax Tribunal, is imminent.

 

The creditors report notes: "An outcome has yet to be determined by the tribunal and is currently expected in October 2012."

 

Among the resolutions which creditors are being asked to approve is Duff and Phelps' fees.

 

The report states: "That the creditors approve the remuneration, expenses and outlays of the joint administrators in respect of all accounting periods not previously approved, being, in respect of remuneration only, £2,930,644 for the period 14 February 2012 to 29 June 2012 and £191,039 for the period 10 August 2012 to 14 September 2012."