http://www.telegraph.co.uk/sport/fo...te-against-Company-Voluntary-Arrangement.html Her Majesty's Revenue and Customs have told Rangers they will vote against a Company Voluntary Arrangement. Charles Green, who is leading the Sevco consortium aiming to acquire the club, confirmed the news this morning. HMRC's no vote is enough to deal a fatal blow to the CVA proposal and Green will now push ahead with plans to buy the club's assets and form a new company. Green said in a statement: "I am hugely disappointed by the decision of HMRC not to support the CVA proposal and that disappointment will be felt acutely by Rangers fans across the world." HMRC, who are currently owed more than £21 million, believe their decision to force liquidation will allow them to pursue individuals for the debt. A statement from the tax authority read: "A liquidation provides the best opportunity to protect taxpayers, by allowing the potential investigation and pursuit of possible claims against those responsible for the company's financial affairs in recent years. A CVA would restrict the scope of such action. "Moreover the liquidation route does not prejudice the proposed sale of the club. This sale can take place either through a CVA or a liquidation. "So the sale is not being undermined, it simply takes a different route. "Liquidation will enable a sale of the football assets to be made to a new company, thereby ensuring that football will continue at Ibrox. "It also means that the new company will be free from claims or litigation in a way which would not be achievable with a CVA. "Rangers can make a fresh start." The decision brings into doubt the continued existence of an Ibrox club competing in the Scottish Premier League. If Green forms a new company, he will have to apply to the SPL to acquire Rangers' share in the competition. The clubs themselves will decide whether to accept. A new Rangers would not be able to compete in Europe for three years under Uefa rules. Green said: "Frankly, I do not see what benefit will be achieved by this decision. "My consortium's offer for a CVA amounted to a total of £8.5m. "Now that we will have to complete the purchase via the formation of a newco, the purchase price and therefore the amount available to creditors will be £5.5million. "I can understand HMRC deciding that football clubs which do not pay their taxes need to be punished, but by effectively banning Rangers from Europe for three years all that will happen is that there will be less revenue generated by the club and consequently less money paid over to the taxman. "Also, I do not believe that by opting to vote against the CVA proposal, HMRC will generate more cash by pursuing those they believe as responsible - but that is a matter for them." Green said he would explore ways of allowing the club's 26,000 shareholders to buy into his new company. He added: "The solemn promise I can make to Rangers fans today is that this club will continue as Rangers Football Club and will continue to play at Ibrox Stadium. "We will be liaising with the football authorities at the earliest opportunity to establish our position regarding the SPL. "I, along with my investors who believe that Rangers can have a bright future, will fight tooth and nail to ensure the club recovers from this catastrophic phase in its proud history. "The fans deserve better and we will work tirelessly to realise their ambitions." Rangers' administrators, Duff and Phelps, confirmed a "binding" sale and purchase agreement with Green would now come into effect. In a statement, joint-administrator Paul Clark said: "As we have always stated, administrators have a primary objective to ensure the survival of the company and in this case, this would have been achieved through a CVA. "It was with HMRC's approval, that a proposal was placed before creditors for consideration. "However, it is the commercial view that the level offered within the CVA was not enough to merit departure from their normal policy of seeking a detailed investigation via a liquidator. "However, we have been left in no doubt by HMRC the fundamental reason for the rejection of the CVA proposal is the historical non-compliance with tax liabilities by the former owners and directors of the club." Clark said Green's consortium will move to acquire the club's assets immediately after the formal rejection of the CVA proposal at a creditors' meeting at Ibrox on Thursday morning. "That transaction will be completed within a few days," Clark added. "The sum payable to creditors will be £5.5m, most of which has already been paid over to us by the Green consortium. "Over the coming months, we as administrators will continue to finalise the administration of the club and we will work in conjunction with BDO, who will undertake the liquidation process. "While the club will continue to face difficulties in the short term, it will survive and continue to play at Ibrox."
i hope rangers dont go tbh.......celtic and rangers is the only true "fire and passion" derby left in british football. come on rangers fans(rich) dig deep and keep the club afloat...scottish football needs ew
All over Talkcrap this afternoon, if they reform they will apply to join the English FA, the Scottish FA fear this could cause a mass exodus from the scottish leagues. imo this was bound to happen sooner or later. Very sad day for Sweaty football.
It would not surprise me if Rangers do apply to join the English league system. I really believe they would maintain a strong following wherever they end up. If Rangers do take the English league route what will be the impact on Celtic and the rest of the SPL?
I think they have been in self destruct mode for the last decade and its only the big 2 Glasgow sides that give any of their structure any kind of substance at all.
'HMRC, who are currently owed more than £21 million, believe their decision to force liquidation will allow them to pursue individuals for the debt.' clubs that treat paying taxes as an option should go into admin / liquidation. taking VAT from supporters then not passing it on to HMRC is unforgivable. maybe if they make an example of rangers then it will give a kick up the backsides to other clubs operating in a smiliar way....
It's not only VAT but tax & NI from wages. With the Tories cutting everything tax avoiding can't be condoned. Cancer sufferers losing money but football clubs ok not to pay tax. Can’t be allowed
Now here's the thing with the PAYE & NI. This is deducted from the players wages on a monthly basis and is due to HMRC by no later than the 19th of the following month. The HMRC decision to reject the CVA option to pursue debt recovery from individuals is ominous. Rangers was collecting the PAYE and NI on behalf of HMRC. If the club goes into liquidation and no funds are forthcoming to HMRC in respect of the PAYE and NI will they then chase the individual players for non payment of PAYE & NI even though they were under the impression it had already been deducted? I'm sure the HMRC would not do something so under-hand but who knows in these days of austerity!
How can that be allowed to legally happen? It's not the players being under any kind of impression about anything, those individuals never had that money in the first place! They got their wages AFTER HMRC & any other deductions so I fail to see how HMRC can possibly take tax & NI payments from the players when they, in all probability, have a document that clearly shows those amounts deducted from their salary. However, as it's the HMRC and they are above the law when it comes to debt recovery I guess they could then go on to take income tax & NI from the amount actually received by the players (after the aforementioned deductions), and that would be more than a little harsh.
Thai, I also rule nothing out with the HMRC. If the player can show the tax and NI was deducted from their salary then I don't see how they can chase the player for unpaid tax and NI. But Rangers were collecting on behalf of the HMRC and didn't forward the funds to the relevant government bodies. Can the HMRC pursue the individual player? I do not know, but it isn't out of the realms of possibility given all the "special" arrangements HMRC has had with the football clubs.
