HMRC reject CVA as Rangers head for liquidation

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BBC today confirmed what we have been telling you would happen for months, HMRC have rejected the proposed Rangers CVA.  One of the world’s oldest and most successful football clubs will now be liquidated.

Despite what should have been well-informed opinion from the Scottish accountancy profession, the proposal from Charles Green was always – always – destined to fail.  His proposal to investors offered to treat football creditors different from other creditors in the same class, including HMRC, which contravenes the terms within which HMRC are able to agree to a CVA.

The line “All creditors to be wiped clear on consideration of £8.5m save for £3m being owed to other football clubs” ensured HMRC had no choice.

Prepare for the most intense two weeks of lobbying in Scottish history.  Once the SPL received notification from Duff and Phelps of their intention to liquidate they will simultaneously receive an application from Sevco 588 to join the league.

My sources, which confirmed all along that the Sevco CVA proposal would contain a deal-breaker for HMRC, now tell me that Sevco will offer to back plans on the SPL voting structure, allowing home gate money to be shared at a vote in the near future as a price of getting entry to the league.

Sevco will gain out of this, as they will be able to sell more tickets to the SPL than the third division, the Gang of 10 will also gain, it is only Celtic who will lose financially as your season ticket money is offered BY SEVCO as an incentive to get them into the league.

Without Sevco in the league the Gang of 10 would be able to change the voting rights anyway but if Sevco acquiesce on sharing gate money, the Gang get to keep sponsors, TV money and earn a whole new slice of income every time they visit Celtic Park.

Enjoy your ice cream and jelly.  There will be more soon on the consequences of liquidation of Rangers and what would be left in the event of a phoenix, but prepare for the bedlam that lies ahead.

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  1. I’m a badgeholder, hear me shout.

     

     

    For its a grand old team to play for

     

     

    Sing along you know the rest

  2. philvisreturns on

    BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS – NaeoffenceyacapitalistgitCSC

     

     

    None taken.

     

     

    The Vodafone thing was a highly technical case concerning interpretation of UK tax law (and European law on freedom of establishment) as it relates to EU-based controlled foreign companies.

     

     

    Basically Vodafone was making certain provisions for tax in accordance with their understanding of the rules, until the ECJ’s 2006 decision in the Cadbury-Schweppes case, which led them to believe they no longer had to make those provisions for tax and would save a lot of money in the process. HMRC disagreed and took them to court. Vodafone initially won their case in front of the Special Commissioners and on HMRC’s appeal to the High Court. After yet another appeal by HMRC, the Court of Appeals said that Vodafone might be in the wrong, if its corporate structure was set up for the sole purpose of dodging tax (NB I am greatly simplifying here).

     

     

    Rather than take it to the Supreme Court for a final decision, which would have given us all clarity on this point of law, HMRC and Vodafone decided to settle. In HMRC’s defence, they were chasing a lot of other companies over similar tax arrangements to Vodafone and may have feared they’d get nothing if they lost on appeal, rather than getting something by settling. Vodafone will have made a similar cost/benefits analysis on the risk of losing an appeal compared with the settlement offered by Hector.

     

     

    The whole tedious affair was misreported in Private Eye as “Vodafone let off with £6Bn tax bill shockah!!!” (there never was a £6Bn tax bill) and has subsequently become an urban legend championed by legally and financially illiterate journalists, because a simple story with clearly defined goodies and baddies sells more papers and gets more clicks than a complicated and somewhat boring story about a dispute over legal and accountancy rules.

     

     

    Hence the protests by well-meaning idiots.

     

     

    (thumbsup)

  3. celticrollercoaster says In Neil we trust on

    Happy Liquidation Day!!! Enjoy yer jelly and ice-cream

     

     

    Now the newco games begin.

     

     

    HH

     

     

    CRC

  4. •-:¦:-•** -:¦:- sparkleghirl :¦:-.•**• -:¦:-• on

    Yee haa! I thought this day would never come.

     

     

    What now then? Newco parachuted in or liquidation and in-fighting to the death?

  5. From STV

     

     

    Charles Green, who is leading a consortium to acquire Rangers Football Club, issued the following statement today.

     

     

    Mr Green said: “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.

     

     

    “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 £8.5 million.

     

     

    “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 £5.5 million.

     

     

    “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.

     

     

    “I am particularly saddened by the fact that this decision will mean that small shareholders will lose their shares in The Rangers Football Club plc, something which we were trying to avoid happening.

     

     

    “We will be exploring ways for the 26,000 shareholders who have lost their shares to subscribe for shares in the new company. We expect to appoint a private client broker in due course to allow existing shareholders and fans to buy into the new company.

     

     

    “We will, however, examine how to address this with regard to shares in the new company.

     

     

    “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

  6. It’s what they were all angling for,

     

    Next step liquidation, then Newco.

     

    Scottish football has a choice Newco into the lower leagues or the end for Scottish football.

     

    HH

  7. Paul67

     

     

    The other SPL clubs have already noted their own fans protests. They will not be allowed back into the SPL without major penalties if at all.

     

     

    Celtic are the only game in town now, they will not antagonise us.

  8. Can we resign over the issue of shared home games Paul or are there other avenues the Club can take…as much as I like the idea of thems going belly up we surely cannot suffer financially for CG and his short term game philosophy…por cierto

  9. Dontbrattbakkinanger on

    God bless Her Majesty’s Revenues and Customs.

     

    If I could I would plant a big smacker on ole Dick Byrne’s cheeky wee face.

  10. Estadio Nacional on

    :clap: :clap: :clap: :clap: :clap: :clap: :clap:

     

     

     

    Oooops wrong page….

     

     

    Still……… YEEEEEEEEEEEEEEEEEES

     

     

    FINISH THEM.

  11. Green Lantern (((((0))))) on

    Recipe for rankers ratatouille.(Accent on RAT)

     

    First take some rotten garbage. Liquidise to a fine pulp.

     

    Then, chuck it all down the lavvy pan.

     

    Flush away making sure that all of the filth has gone.

     

    Open some ice cream and eat with jelly.

     

    ENJOY.

  12. Haw…..”Hughie ” Green……

     

     

    The Opportunity Stops……………period.

     

     

     

    “an’ we mean that most sincerely, most sincerely folks!”

     

     

    HH.

  13. Green said he is only here for a year. A 3 year European ban will not affect him.

     

     

    Their rangers til July! Their rangers til July! I know they are, I’m sure they are, Their rangers til July!!

     

     

    NO MORE 5 STARS!!

  14. Where will this new club play as Ibrox will be available to the highesat bidder?

     

     

    Dermot, if you buy it, it would make you a legend up their withh Walfrid, Glass, Bob Kelly & Fergus!!!!

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