£49 Million in debt, what do you think will happen now.

http://www.dailymail.co.uk/news/arti...-tax-case.html

 

Administration, debts reduced and someone else will take over splashing the cash and so the cycle begins again.

 

Made my day this news! Although i have no doubt they will continue!

 

The have filed for administration.

 

instant ten point deduction.......

But they will be back, it's their crditors I feel for, THEY will get Royally Screwed!

 

Was there not something about how Whyte is the biggest creditor so he gets paid first, the debt gets written off and then the club starts over?

 

so the biggest creditor will the the UK tax payer

great, more scroungers, but they all drive Bentleys - wierd that

 

Difficult to see them getting out of this if they lose the tax tribunal case. They can only exit administration with the agreement of 75% of the creditors. HMRC is owed £49M which is likely to be significantly more than 25%, and they will almost certainly block any deal.

Does anyone know the ins-and-outs of the tax dispute? Sounds like it dates from before Craig Whyte's reign, but it was hoping it would go away rather than planning on having to pay. I also read he has raised £24.4M from Ticketus in return for the next three year's season ticket revenues, so they could be facing a big write-down.

 

The bbc scotland program about Craig Whyte's past

http://www.youtube.com/watch?v=xaKR13_2QX4

 

 

Quite surprised by this.

 

Celtic supporter?

 

Knowing where dunks from I think it may be a team in red and white!


( stand free )

 

 

LOL, not exactly upset at this tragic news then

 

Very far from it, swings and roundabouts and all that.

 

 

Failed ebt tax planning is the majority of the hmrc issues.

 

They have been avoiding tax for ten years via EBTs. Why should HMRC let them off, they only do that with banks.

 

I can never understand how anyone can run up a tax bill of £100,000 let alone one of millions?

What are HMRC playing at?

They will chase people who owe £50 from pillar to post, giving out £100 fines along the way, while these people just don't pay?

Or will this be another Vodaphone fiasco?

 

I've heard they might relocate to Dublin for tax purposes?

 

Maybe a change of name is needed too, Dublin Rangers sounds good, the hardcore supporters would love that!

 

Celtic fans would be gutted if Rangers went out of business and the SPL probably wouldn't survive either, Scottish football is nothing without the old firm games, I can't see Celtic Hearts having the same pulling power.

Stupid to borrow against season ticket sales, they won't earn enough in match day revenue from the walk ins to service the debt.

 

They didn't run up a tax bill per se.

They used a mechanism to pay the high end staff via Employment Benefit Trusts that was not the intended use of these instruments.

The HMRC uncovered this and changed the rules - also allowing for an amnesty if those who had abused the system 'volunteered' to make good. This was early 2010 I think.

The scope of misuse at Rangers is now clear to see.

 

Too big to fail?

 

Hmrc have applied to the court this morning to put the club into receivership

 

Good. Pulling stunts like this not paying tax is why Greece is in the $hit. Throw the book at em.

The owner should go after the previous owner as who would buy a co. with such large unknown liabilities. Hidden off balance sheet finance naughty naughty.

 

What a massive mess!!!!

 

Is it portsmouth that are close to going under too?

TX.

 

Christ on a bike

Maybe I should clarify a few things

Rangers will not be the first club to fall foul of the changes to the EBT rules. Changes, incidentally, that were brought about by the Inland Revenue when it realised there was a loophole.

Expect HMRC to hunt down some of the large English premiership clubs who also exploited the loophole too.

The reason for using EBTs were that the wage demands of top players, brought about by greed from players and their agents, and effectively encouraged by top clubs across the world made it a very attractive proposition.

Why would you not use something that was legal at the time?

The vast majority of the debt has not been funded by the taxpayer, nor will the taxpayer have to pay for it in the event the Club is sold or exits administration via a CVA (Company Voluntary Arrangement) having reached a compromise with all of its unsecured creditors. Creditors including HMRC, which is unquestionably the largest in value, if not, to all intents and purposes the only unsecured creditor here.

But here's the thing. HMRC's options here are a) to agree to a compromise of pence in the £ and sign up to a CVA, or b) get nothing if the club is sold out of Admnistration or simply ceases to exist.

Hardly a complicated decision for HMRC to make - although there's no guarantee the'yle make the right one.

The issue now is the negotiation between the Administrators and HMRC. Just how much, or more correctly, how little, will HMRC accept. Administration has cost the Club 10 points. But it has also made it abundantly clear to HMRC that they have to be sensible in their negotiations or risk getting nothing at all.