Colonel Mustard 380 Posted September 2, 2011 Share Posted September 2, 2011 Someone could maybe correct me if I'm wrong in this, but in general terms, I understand the protection of Rangers against the tax bill is as follows...1. Whyte formed a company to assume the debt previously accrued by Rangers Football Club, and which was owed to Lloyds when he bought the club.2. Rangers Football Club now still owe Whyte's company the (debt) money.3. If Rangers go into administration, Whyte's company is the first creditor to get paid. This means that Rangers would have to settle the debt with Whyte's company, and that HMRC would then get the square root of fuck all.4. Rangers would then be free to come out of administration with no debt, and no tax bill, to start afresh.Have I got this correct?Would this mean that the last thing that HMRC want is for Rangers to go into administration, as they would receive no payment whatsoever? Quote Link to post Share on other sites More sharing options...
TheLawMan 6,240 Posted September 2, 2011 Share Posted September 2, 2011 You have it correct. Quote Link to post Share on other sites More sharing options...
J...R 20 Posted September 2, 2011 Share Posted September 2, 2011 Your 100% correct Quote Link to post Share on other sites More sharing options...
PeterheadBear 1 Posted September 2, 2011 Share Posted September 2, 2011 Why does Whyte getting repaid first automatically mean that HMRC get nothing? Genuine question, I don't know! Quote Link to post Share on other sites More sharing options...
gunslinger 270 Posted September 2, 2011 Share Posted September 2, 2011 yes and if we don't go into administration the debts written off. Quote Link to post Share on other sites More sharing options...
TheLawMan 6,240 Posted September 2, 2011 Share Posted September 2, 2011 Why does Whyte getting repaid first automatically mean that HMRC get nothing? Genuine question, I don't know!It's not automatic but likely. Essentially Craig whyte will be owed between £25m and £30m. Hmrc will only get a sniff if the assets were sold for more than Craig Whytes debt and even then, they would be in the pot with other creditors. Quote Link to post Share on other sites More sharing options...
californiadreamin52 339 Posted September 2, 2011 Share Posted September 2, 2011 Whyte`s company would get payed first as they are the major creditor Quote Link to post Share on other sites More sharing options...
djbroxybear 660 Posted September 2, 2011 Share Posted September 2, 2011 Whyte took us over geared up if the club go into administration he's in a win win situation and the worst we get points deduction. Whyte would do a deal get the club and we start again. Quote Link to post Share on other sites More sharing options...
Nemesis 277 Posted September 2, 2011 Share Posted September 2, 2011 The further beauty is Whyte's compamy would only get 'paid' what he agrees with the administrator (who he appoints)e.g 10p in the poundAll creditors need to approve the deal in theory but as major creditor he would carry more power and force it throughIt would be a disaster for HMRC if this were to happen thus why I see no logic in why they are pursuing such sums.It would be far easier for them to strike a reasonable deal that suits all parties.I can't help thing they know this but someone somewhere wants to apply maximum negative coverage to Rangers for as long as they canThere is no other logical explanation. Quote Link to post Share on other sites More sharing options...
PeterheadBear 1 Posted September 2, 2011 Share Posted September 2, 2011 Is this how every club / business configures its debt arrangements then?Seems like it would be stupid not to! Quote Link to post Share on other sites More sharing options...
DIESEL RFC 32 Posted September 2, 2011 Share Posted September 2, 2011 It sounds good but if we did go into administration would we be forced to sell all our star players and assets that we have?That aint good if correct,we would be debt free again but a brutal playing squad! Quote Link to post Share on other sites More sharing options...
TheLawMan 6,240 Posted September 2, 2011 Share Posted September 2, 2011 It sounds good but if we did go into administration would we be forced to sell all our star players and assets that we have?That aint good if correct,we would be debt free again but a brutal playing squad!It depends. If someone came along and said they would buy all the assets for £30 million and it was believed that amount was going to be the best achieved, then we could have a new owner with no debt and the same squad, though there would need to be a working capital injection to pay everything until the next batch of money comes in. Quote Link to post Share on other sites More sharing options...
dan_ger 1,454 Posted September 2, 2011 Share Posted September 2, 2011 It sounds good but if we did go into administration would we be forced to sell all our star players and assets that we have?That aint good if correct,we would be debt free again but a brutal playing squad!The point is not to actually go into administration, it is to hold as much control as possible and to fend of the likelihood of anyone trying to wind the club up. It creates a buffer zone if you like. Also at the end of the day, if the shit really hit the fan for some reason I would rather have our club with a bad squad of youth players than have a club with no stadium and no murray park and no players!This is Whyte's game, he know how to play it well. I am not happy with everything he has done on the player side but this is a very wise move for him and the club. I am hoping his ability to wheel and deal for players will improve with experience. Quote Link to post Share on other sites More sharing options...
Spacecowboy 92 Posted September 2, 2011 Share Posted September 2, 2011 from HMRC's point of view they are using this as a test case.if they win, it wont matter to them how much they make or lose as this will enable them to use this case as a standard to chase other companies and football clubs alike for the same thing. thus making it alot easier for them to get results in those cases. (I think Man City have been at it big time also, not sure, but i rememebr reading that a few EPL team have been awaiting this case to come about as they too are in the spotlight if the shit hits the fan).HMRC will cut thier nose off to spite thier faces and they are a government dept. Logic doesnt enter into this when they are spending public money. Quote Link to post Share on other sites More sharing options...
BILLYSNOVO 5 Posted September 2, 2011 Share Posted September 2, 2011 It's not as simple as that,administration is not the best way forward for our club as anyone involved in business on here will confirm.Administration is the very very last route any company should go down as it will be detrimental on the long run.As for HMRC they will happily wind us up in order to squeeze every last penny out of us. Quote Link to post Share on other sites More sharing options...
reddrock 107 Posted September 2, 2011 Share Posted September 2, 2011 Someone could maybe correct me if I'm wrong in this, but in general terms, I understand the protection of Rangers against the tax bill is as follows...1. Whyte formed a company to assume the debt previously accrued by Rangers Football Club, and which was owed to Lloyds when he bought the club.2. Rangers Football Club now still owe Whyte's company the (debt) money.3. If Rangers go into administration, Whyte's company is the first creditor to get paid. This means that Rangers would have to settle the debt with Whyte's company, and that HMRC would then get the square root of fuck all.4. Rangers would then be free to come out of administration with no debt, and no tax bill, to start afresh.Have I got this correct?No as no creditor can be given preferential status on a listed companyWould this mean that the last thing that HMRC want is for Rangers to go into administration, as they would receive no payment whatsoever? Quote Link to post Share on other sites More sharing options...
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