minstral 5,375 Posted February 14, 2012 Share Posted February 14, 2012 Rangers owner Craig Whyte is on the brink of tipping the club into administration in an attempt to avoid the ruinous impact of a £50 million tax investigation that could also affect up to eight Premier League clubs.By Paul Kelso telegraph.co.ukThe Old Firm club on Monday filed notice of their intention to enter administration, citing the threat of a tax bill of between £5 million and £50 million — and possibly as high as £100 million — as the reason for a move that would see an automatic 10-point penalty.Rangers’huge potential tax liability is the result of an ongoing tax inquiry by Her Majesty’s Revenue & Customs into the club’s use of a complex tax avoidance device, Employee Benefit Trusts.HMRC is seeking as much as £49 million in unpaid tax, interest and fines for Rangers’ use of EBTs in the 10 years before Whyte bought the club last year.The Daily Telegraph understands that up to eight current or former Premier League clubs are facing a similar investigation into their use of EBTs, which were considered an efficient — and legal — means of reducing tax until relatively recently.Administration, which will come within 10 days of Monday’s notice, would leave Rangers 14 points behind Celtic in the Scottish Premier League and effectively see them concede the Scottish title. It will, however, provide significant protection for the club and Whyte, who remains the majority shareholder and largest secured creditor, against HMRC’s demands, and can be seen as a proactive, defensive measure.A tax tribunal is currently considering its verdict in the Rangers case, which if it went against them would be ruinous to the club and have a significant impact on Whyte.Under EBTs companies pay money into a trust that then loans the money to the employee for benefits, typically pensions or for the purchase of shares, on the understanding that the loan is never repaid. HMRC alleges that Rangers’ previous owners simply used EBTs to avoid paying millions of pounds in tax and National Insurance on the player payroll.Sources said on Monday night that HMRC is investigating whether Premier League clubs operated in a similar way.Whyte has openly considered the prospect of administration since he took over at Ibrox, notably in an interview with The Daily Telegraph last September, and statements released on Monday night suggested the latest move is part of a negotiation with HMRC.The chairman is Rangers’ secured creditor after a company he controls cleared bank debts of £17 million with a loan from one of his companies upon his takeover last year.In normal circumstances HMRC would be first in the queue for repayment of outstanding debtors, but in administration the taxman has no protection, and will have to join the line behind Whyte and the players to get its money back.If administration is successfully negotiated Whyte could emerge in control of the club, albeit through a new holding company, with any potentially crippling tax liability drastically reduced.In a statement the club said they had already approached HMRC with proposals for a Creditors Voluntary Agreement — a deal to pay off outstanding debts — and were seeking a moratorium from further action.If approved the Rangers CVA would allow the club to emerge from administration within a month, crucially allowing it to hit Uefa deadlines for gaining a licence to play in European competition, a crucial revenue stream for the club. It also said that Whyte, the majority shareholder, would continue to fund the club if the tax authorities agreed to “ring-fence” that funding from any tax issues.Last night HMRC indicated it would not agree to any such deal, with sources claiming that the EBT issue was “entirely unconnected” with Monday’s move by Whyte, and a “red-herring”. Whyte said the opposite was the case.“The fact is that Rangers ongoing financial position and the HMRC first tier tribunal are inextricably linked,” Whyte said. “Rangers costs approximately £45 million per year to operate and commands around £35 million in revenue. From the outset I have made it clear that I do not think it is in the best interests of Rangers to throw good money after bad. Against a backdrop of falling revenues, costs have to be cut significantly. Painful as though that may be, it is the future of clubs such as ours.“There is no realistic or practical alternative to our approach because HMRC has made it plain to the club that should we be successful in the forthcoming tax tribunal decision they will appeal the decision.“This would leave the club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC which will be due whatever the overall result of the tax tribunal.” Whyte’s own business background has been the subject of intense scrutiny since he took control at Ibrox.Last week he was ordered by a court to pay a disputed bill of £86,000 to a roofing contractor for work carried out on his home, Castle Grant on Speyside, with the judge describing his evidence as “wholly unreliable”.A self-styled “company turnaround” specialist he has to a mixed record, and has admitted not disclosing that he was banned from operating as a director for seven years. An investigation into the allegations, made by BBC Scotland, by the stock exchange is ongoing. Quote Link to post Share on other sites More sharing options...
minstral 5,375 Posted February 14, 2012 Author Share Posted February 14, 2012 As has been said all along, we're the test case. They want a win with us so that they can take on the bigger teams (who have avoided more than us) with a solid foundation.Spot on Kev. Quote Link to post Share on other sites More sharing options...
Thermopylae 15,286 Posted February 14, 2012 Share Posted February 14, 2012 As has been said all along, we're the test case. They want a win with us so that they can take on the bigger teams (who have avoided more than us) with a solid foundation.So why are we the test case? Is it because we don't have the financial backing of the EPL clubs? Quote Link to post Share on other sites More sharing options...
bluebellsareblue82 15 Posted February 14, 2012 Share Posted February 14, 2012 So why are we the test case? Is it because we don't have the financial backing of the EPL clubs?Cause no one likes us. WE DONT CARE .Fuck knows mate. Quote Link to post Share on other sites More sharing options...
caseyjones 3,009 Posted February 14, 2012 Share Posted February 14, 2012 Last night HMRC indicated it would not agree to any such deal, with sources claiming that the EBT issue was “entirely unconnected” with Monday’s move by Whyte, and a “red-herring”. Whyte said the opposite was the case.If true, that would indicate that HMRC have no intention whatsoever of accepting any proposed deal that Whyte has to offer, but I expect he already knows what their position is. Quote Link to post Share on other sites More sharing options...
RFC55 108,665 Posted February 14, 2012 Share Posted February 14, 2012 Smaller, easier target. Start at the bottom and work your way up.Am i right in saying Man united are one of the teams? I am positive they were mentioned in previous articles Quote Link to post Share on other sites More sharing options...
Right_To_Censor 1,951 Posted February 14, 2012 Share Posted February 14, 2012 i wonder who the other 8 are Quote Link to post Share on other sites More sharing options...
FUDGIE52 9 Posted February 14, 2012 Share Posted February 14, 2012 So why are we the test case? Is it because we don't have the financial backing of the EPL clubs?I would say so mate, could you imagine the outcry if they [hmrc] had treated say Man Utd they way they have treated us, it wouldn't have be allowed to happen. Same as when the tories used Scotland to try out the poll tax, we took it like sheep the english rioted and got it stopped, yup Rangers are the guinea pigs. Quote Link to post Share on other sites More sharing options...
Jelle1880 225 Posted February 14, 2012 Share Posted February 14, 2012 Am i right in saying Man united are one of the teams? I am positive they were mentioned in previous articlesIf that would happen you would very clearly see the difference between the English and Scottish media.One would back their club, guess which one. Quote Link to post Share on other sites More sharing options...
Jocky Broon 207 Posted February 14, 2012 Share Posted February 14, 2012 http://www.express.co.uk/posts/view/302008/Craig-Whyte-tells-Rangers-ex-directors-to-step-up-to-financial-plate/So Whyte has called the bluff of Johnston et al.Lets see if they step up. Quote Link to post Share on other sites More sharing options...
caseyjones 3,009 Posted February 14, 2012 Share Posted February 14, 2012 http://www.express.co.uk/posts/view/302008/Craig-Whyte-tells-Rangers-ex-directors-to-step-up-to-financial-plate/So Whyte has called the bluff of Johnston et al.Lets see if they step up.To coin one of his favourite phrases, "He's got a cheek"! Didn't he recently have them all removed from the board? Quote Link to post Share on other sites More sharing options...
Mr Struth 137 Posted February 14, 2012 Share Posted February 14, 2012 Didn't the bead rattlers use EBTs for a period? Quote Link to post Share on other sites More sharing options...
Johnstone Burgh 1,637 Posted February 14, 2012 Share Posted February 14, 2012 I guess it'll be like Arsenal, Leeds, Newcastle, Portsmouth and so on? Quote Link to post Share on other sites More sharing options...
caseyjones 3,009 Posted February 14, 2012 Share Posted February 14, 2012 Didn't the bead rattlers use EBTs for a period?You tell us. Quote Link to post Share on other sites More sharing options...
Mr Struth 137 Posted February 14, 2012 Share Posted February 14, 2012 You tell us.Nothing like unity the night eh Casey. Hopefully you get off your fat arse and get along on Saturday. Quote Link to post Share on other sites More sharing options...
Mr Struth 137 Posted February 14, 2012 Share Posted February 14, 2012 Double Post Quote Link to post Share on other sites More sharing options...
caseyjones 3,009 Posted February 14, 2012 Share Posted February 14, 2012 Nothing like unity the night eh Casey. Hopefully you get off your fat arse and get along on Saturday.Nope, I won't be there. Quote Link to post Share on other sites More sharing options...
Mr Struth 137 Posted February 14, 2012 Share Posted February 14, 2012 Nope, I won't be there.Aww I'll buy you a Champions Meal if you do? Quote Link to post Share on other sites More sharing options...
54andcounting 627 Posted February 14, 2012 Share Posted February 14, 2012 "and possibly as high as £100 million".Fuck, this just keeps going up! be a billion by Friday. Quote Link to post Share on other sites More sharing options...
Redmond7 934 Posted February 14, 2012 Share Posted February 14, 2012 "and possibly as high as £100 million".Fuck, this just keeps going up! be a billion by Friday. The rate of inflation these days is appalling Quote Link to post Share on other sites More sharing options...
weeblu 0 Posted February 14, 2012 Share Posted February 14, 2012 citing the threat of a tax bill of between £5 million and £50 million — and possibly as high as £100 millionLooks like some cunt at the Giro Dome has given HMRC a lone of the "Saville calculator" Quote Link to post Share on other sites More sharing options...
Clemdog 39,389 Posted February 14, 2012 Share Posted February 14, 2012 Looks like some cunt at the Giro Dome has given HMRC a lone of the "Saville calculator"RIP ! Quote Link to post Share on other sites More sharing options...
Thermopylae 15,286 Posted February 14, 2012 Share Posted February 14, 2012 I would say so mate, could you imagine the outcry if they [hmrc] had treated say Man Utd they way they have treated us, it wouldn't have be allowed to happen. Same as when the tories used Scotland to try out the poll tax, we took it like sheep the english rioted and got it stopped, yup Rangers are the guinea pigs.One of the big differences is all the other teams and football authorities down south would back each other up where as up here we are happily thrown to the wolves Quote Link to post Share on other sites More sharing options...
TheLawMan 6,240 Posted February 14, 2012 Share Posted February 14, 2012 As has been said all along, we're the test case. They want a win with us so that they can take on the bigger teams (who have avoided more than us) with a solid foundation.They have already won a test case on EBT's early 2011. Why would they need a second test case ? Quote Link to post Share on other sites More sharing options...
pcbear 10,913 Posted February 14, 2012 Share Posted February 14, 2012 As has been said all along, we're the test case. They want a win with us so that they can take on the bigger teams (who have avoided more than us) with a solid foundation.I'm sure the poll tax was rolled out in Scotland a year before the rest of the UK, Guinea pigs part 2? Quote Link to post Share on other sites More sharing options...
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