I see Leeds United are being held up as a model for Rangers to liquidate and emerge as a new club. Leeds United’s circumstances are highly unlikely to bear any relationship with those at Rangers unless Duff and Phelps can agree a Creditors Voluntary Arrangement.
Leeds United AFC Ltd entered administration in the control of KPMG Restructuring on 4 May 2007 and on the same day were sold to a new company Leeds United Football Club Ltd subject to a Creditors Voluntary Arrangement (CVA) being agreed. Both Leeds United AFC Ltd and Leeds United FC Ltd were controlled by Ken Bates.
A CVA requires 75% of creditors (by value) to vote to accept a reduced percentage of the money they are owed. The company was forced to act as HMRC, who were owed in excess of £6m, had issued a winding up petition which was due to expire on 25 June 2007.
Before creditors voted on the CVA several other bidders came forward with offers for the club, however, the vote, on 1 June 2007, returned 75.02% of creditors accepting the CVA offer (75.20% after a recount).
Creditors can challenge a CVA within 28 days of the vote. On the 28th day, 3 July 2007, HMRC challenged. With the CVA subject to a challenge, KPMG asked for further offers for the company to be submitted by 9 July 2007. Despite the extended offer period, the administrators still accepted the offer from Ken Bates Leeds United FC Ltd.
With a CVA agreed, subject to challenge, the Football League transferred Leeds United AFC’s league share to Leeds United FC Ltd under its “exceptional circumstances” provision. The League imposed a 15 point penalty on the club for the 2007-08 season for failing to satisfy the outstanding legal challenge in time, necessitating the ‘exceptional circumstances’ rule.
HMRC withdrew their objection to the CVA the following month. Leeds United subsequently appealed against their 15 point penalty citing a CVA had been agreed and that the league programme does not allow time for spurious challenges to be dealt with. The Football League refused the appeal.
Believing Football League procedures were at fault, not their own behaviour, Leeds United served the League with a High Court writ to challenge the points deduction, however, both parties agreed to abide by the findings of an arbitration panel hearing.
The arbitration panel found against Leeds United citing the following two reasons:
A director of Leeds United FC signed an earlier agreement not to commence any proceedings against the League.
Leeds United waited 7 months before commencing the action, which brought unnecessary sporting consequences on other promotion chasing clubs, specifically Doncaster Rovers, who would no longer be in an automatic promotion spot if Leeds’ 15 points were restored.
In summary:
Leeds United AFC Ltd’s administrators achieved the necessary 75% support for a CVA.
They withstood the challenge from HMRC, paid creditors and concluded the transfer of assets, including League share, to Leeds United FC Ltd, according to the terms of the CVA before winding up the old company. No loose ends were left.
This is not a Liquidator’s Charter. Provisions in football only exist to transfer a League share from one company to another if creditors are satisfied, either by being paid in full or, as with Leeds United, with 75% agreeing to accept a diminished amount.
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Good morning friedns and a very happy Holy Thursday from a cold, frosty but beautifully clear skied East Kilbride.
So now it’s only Only another 3,163 minutes and just 2 sleeps until our (hopefully) title winning game kicks off.
Jobo
Good morning troops, Serge cracking photographs of Petra mate. I just bought a collection of photos (5) from a local artist Richard Close (Jersey) and the good ladies favourite is called scream. It is an abstract from a rock face in Petra. You can google his name and view his gallery. Hope you and the family are well.
SUMMA OF SAMMI
I believe it is 1300 BST,1200 GMT.
At least,according to a bookies ad.
Paddy
Morning mate, Glad you enjoyed, what an experience it was. coming through the mountain pass to view the temple was unbelievable. Sounds good i will have a look now (hard going this work eh). Everyone back home is well thank you, and same to you & your family. HH
MWD – saw your earlier question. I’ll research that and let you know next time we’re simoultaneously on the blog.
Jobo
SUMMA
I just checked the official site,first tee-off is ten minutes earlier than I said above.
0750 LOCAL TIME.
This year’s Masters bets –
Rory Mcilroy to win. And 5 for an interest – Garcia, Choi, Fowler, Lair and Lawrie.
Total stake £4!!
Off to work now…
Jobo
or Laird even…
Jobo
Transparency, Clarity the new buzz words at ibroke, after 140 years of secrecy
Former Rangers chairman Alastair Johnston has joined fans groups in urging transparency among all the four groups bidding to take over the club.
“They need to be transparent about who the individuals are, who are part of the consortiums,” said Johnston.
We would like the answer to basic questions: who are you and why do you want to buy Rangers?
”
Andy Kerr
Rangers Supporters Assembly
MWD –
“How does using a fuel card business/personal supplied by your company work with the tax man? I suspect ole Hector will supplement his income from the personal use but how does a citizen work out whether using fuel card is more beneficial or not?”
The cost of the fuel charged to the company supplied card is treated as taxable income – eg if you has (say) £1,000 of fuel put on the card over a tax year, that £1,000 would be taxed at your highest marginal rate – 50% in your case!!!!! You can claim business miles back (keep a log), I think you can reduce your tax by 40p/mile (it may be more than that now, not sure – just ask a Rangers supporting friend to point you in the direction of the HMRC website for guidance) of business use. Remember that business use does not include your travel between home and office. It does include travel to meet with clients, suppliers, attending other business related meetings.
Yurcl
Greetings.
Celtic minus a goal,6/4 with Skybet.
Irresistible.
Morning all from gay Paree, sunny spells today (16C max).
Bad news!!! I just knew they were going to squirm out of this.
I just read this in that kwality paper, the Hootsman, so it must be true:
RANGERS administrators hope to be able to sell the club next week.
and
Duff & Phelps estimate that an exit from administration before the end of the season is achievable.
Ha Ha Ha Ha Ha Ha Ha Ha Ha
We Tims are highly trained in spotting bullcrap.
I can only imagine the Govanites ain’t.
Paddy
I agree scream is very nice, the colours in the rock are beautiful. Garda Sunset is very impressive. HH
The other night I attended a pre-season umpires meeting at the local cricket league. One of the agenda items was taxation – apparently Hector is looking at taxing the current £37 we get per game. Currently this is treated as an expense whereas Hector may consider it a fee – thus taxable.
If you are reading this Hector I can offer you 2p in the £ – well it’s more than you’ll get from those ibrokes tax dodgers.
gocatchthebigfishandleavethelittlefishaloneCSC
Serge, Kagawa’s an attacking midfielder. Rumours are he’s looking to move to the EPL but would be worth a cheeky bid, as I say. He’s a fantastic player, one of the most creative in the Bundesliga.
Fassreifen
I did google him mate, Japanese so also a shirt seller….fits the bill for us ;-)
MWD, may I suggest you take the old general wade road from Inverness to Fort Augustus, the B862. The main road on North side of Loch Ness is awful in the tourist season. The B862 is a lovely road. From Fort Augustus join the Great Glen Cycle route to Fort William. From Fort William follow the coast road A828 to Connel Bridge, then join the A85 to Tyndrum. This coast road is stunning and again nicer than the A82 in the tourist season.
http://www.accountingweb.co.uk/article/hmrc-arrests-bankers-film-finance-probe/524329
HMRC arrests bankers in film finance probe
Posted by robertlovell PM | on Mon, 13/02/2012 – 14:40 2137 1 comment
More social links Twitter Facebook Linkedin Google+
Officials from HMRC have carried out several raids after looking into allegations that City bankers took part in a tax fraud that exploited a film finance loophole.
Around 16 people are thought to have been arrested in the Revenue’s latest wave of tax fraud arrests.
HMRC has denied the existence of a specific taskforce or team that’s tackling this area, but said the arrests were “routine criminal investigation work”.
HMRC declined to go into detail about the film finance schemes, but said: “As a result of an ongoing HMRC investigation into tax-related criminal offences, HMRC has arrested a number of people, some of whom work for UK banks.”
It has been widely reported in the City press that four current and one former member of staff at the investment banking arm of RBS, as well as London workers from US bank Jefferies and commodities broker Marex Spectron, are believed to have been held.
John Cassidy, tax investigations partner at PKF, said: “My guess would be that HMRC believes they’re over-inflating the relief somewhere along the lines.”
“For HMRC to go to the trouble and use the resources for the raids and arrests, it’s not something that’s a technical argument – HMRC believes that somebody has been doing something deliberately. The amount of raids HMRC carried out every year you can count on one hand – it’s a labour-intensive, time-consuming exercise. If it’s a loophole there are far better ways of handling it.”
HMRC recently launched a series of crackdowns to ensure wealthy people, including footballers and property dealers, pay sufficient tax as the Treasury struggles to cut the deficit.
The arrests were in connection with the financial affairs of the individuals rather than their employers.
In November last year a first tier tribunal decision that two film partnerships were not undertaken on a commercial basis and therefore not entitled to sideways loss relief suggested that the curtain was falling on a once popular tax avoidance strategy.
The declining popularity of film partnerships is playing out in a series of tax tribunals, one involving celebrities and wealthy individuals including Sir Alex Ferguson who have used them as vehicles to offset tax losses.
—————
Do we know of any footballers that might fall into this category?
Morning from a Spring Day in the Chilterns,
Can anyone remember if Todays the last Day when D&P are required to provide information to the SPL re:their Two contracts investigation?
They should not be allowed to drag this out any longer.
Here is the latest Rhebel Phodcast from the Bhoys in Oz.
http://bit.ly/I2BO3F
Safe long weekend Bhoys n Ghirls…
Morning,
So Alex Salmond has intervened on behalf of rangers with HMRC.
And some of you thought the SNP had changed its Protestant ways…
Mountain Bhoy
Your right, Tourists sometimes forgetting what side of the road they are meant to be on. Can be very dangerous for cyclists.
When this is all over ,they will still be alive . We without doubt will be facing a different animal in rangers , we must be prepared to meet them head on . I dont think we have fully used the financial advantage we have held over them , unlike paul and a few others on here , i dont think they will be financially crippled , if they can escape from the charges levied against them , as they are going to do , then they will overcome any other hurdle, im confident new money will make its way to them . IMHO we require not one ,not two but a few more quality players in for key positions , we have the makings of a good side , but as we have seen recently on the big occasion some of our wants are evident . With regards to salmonds interference (if correct) this is nothing short of a national disgrace , and i would hope that the whole of the uk are made aware how tax dodgers are treated in scotland, over to you alex thompson .
jimtim.
Political suicide on salmond part again, They are unionists by nature he will not win over 1 vote with his defence of them, Does he not understand that. Clown of a man. The brotherhood strikes again. No matter what happens HMRC will hold fast, far too much at stake.
KLV
This conversation just took place in work…. V to boss “I’ve got physio this afternoon and need to leave at 1:30pm to make the appointment” boss to V… ” no problem Vinny just do what you need to do” V to boss “cheers I’ll be leaving now then see ye!”
:>)
V
http://www.thescottishsun.co.uk/scotsol/homepage/news/4232746/Refs-in-tax-fiddle-probe.html (so you don’t have to click on the site)
Refs in tax fiddle probe
Tax dodge probe … refs
SPL referees are being chased by the taxman as part of the massive football finance probe which sparked a £70million battle with Rangers.
Her Majesty’s Revenue and Customs officials are investigating 13 top-flight whistlers over allegations they diddled the public purse.
The shock move comes just over a month after Gers were placed on the brink over their disputed tax debt.
An insider told The Scottish Sun: “There is no doubt that the taxman is coming after football — and now the referees are in his sights.
“This is definitely coming off the back of the Rangers crisis.
“The referees are obviously getting a bit twitchy.
“There has obviously been enough evidence to get the interest of the tax people.
“It’s believed HMRC has seen a pattern emerging and decided to widen the net.”
The 13 senior refs will be quizzed by HMRC officials.
The whistlers face allegations that some failed to declare income from European fixtures, which can earn them up to £1,000 a time.
They are also suspected of manipulating expenses by travelling to games together — but claiming separate mileage.
Bizarrely, part of the wrangle is whether items such as suits, gym membership and even shampoo is tax deductible.
The HMRC investigation could go back YEARS.
The revelations emerged in a leaked email from referees’ union chief John McKendrick to many of the 28 Category 1 refs.
The message — dated March 1 — outlines crunch talks between the Scottish Senior Football Referees Association and the tax authorities.
It begins: “As with previous memos, this note has only been forwarded to Cat 1 referees, as the HMRC enquiries only pertain to some of the current Cat 1 referees (13 to be precise).”
It goes on: “HMRC’s initial position on whether expenses are allowable is based on their assessment of the tax submissions of 13 referees… so far nothing is resolved.
“The tax cases under consideration will not be progressed until further discussion has taken place between SSFRA and HMRC.”
The email then adds: “HMRC did ask that we drew the following to the attention of our members.
“HMRC consider that there has been under-reporting of income from European appointments.
“All money received should be reported (income and all expenses).”
The message warned refs they could face fines on top of monies owed if they’ve breached tax laws.
The officials were also ordered not to claim petrol costs from the SFA if they are given a lift to a game by a colleague.
It continues: “HMRC raised the issue of car sharing.
“Regardless of whether the SFA pay us an expenses allowance for travel to matches, HMRC will only allow expenses for car journeys against income if we are the driver.”
Our insider said whistlers can earn a whopping £19,000 a season from officiating at SPL and First Division games — and can top that up with European matches.
They said: “If you take 20 SPL games at roughly £800 over those 12 months then that is £16,000.
“Then you could do 15 First Division games at around £200 which would give you another £3,000.
“That could take a basic annual wage to around £19,000 — and then there are the expenses on top of that as well.
“And I am not even taking European games into this equation.”
Last night Mr McKendrick, whose organisation negotiates pay deals and conditions for top refs, confirmed the union was in talks with tax bosses.
But he claimed many whistlers may end up being OWED dosh from the public purse because they could have overpaid.
Mr McKendrick said: “We initiated contact with tax specialists and HMRC to give guidance to our members.
“We did this because we are self-employed and there has never been any formal guidance. We therefore enlisted a solicitor so that we can provide the right advice.
“We are also involved in really fruitful discussions with HMRC.
“It would also be inappropriate to comment on the affairs of individual referees.” He added: “It costs a lot of money to maintain your status as a referee.
“We feel very strongly that referees should pay their taxes — no more and no less.
“It is likely referees are under-claiming rather than over-claiming. I would believe a lot of them are actually out of pocket.
“So, far from scamming the tax man, it’s as likely to be the other way about.”
Last night tax chiefs declined to talk about the probe into the 13 referees.
A spokesman for HMRC said: “We cannot comment on the tax affairs of businesses or individuals due to confidentiality.”
An SFA spokesman added: “We are aware the SSFRA are in pro-active discussions with HM
;-)
Is it safe to come out yet?
Just heard hun dingwall on rc saying the fan groups will not support any takeover bids that involve liquidation, they still don’t get it do they.
Stupid huns.
I believe that salmond is hoping that come local council and referendum time the orcs will remember what he did for them and vote accordingly . But i also believe that some folk. like the well heeled for example in morningside, newton mearns the fancy suburbs , the sharp people who care not a jot for football in general .and pay hefty taxes on their income and pensions ,and who also have a vote may not be too chuffed with him or his party for their backing of tax dodgers . I wonder if they know.
jimtim.
Salmond is the arch politician and seemingly now will do anything for a vote however the first sign of the butcher’s apron when the great debate starts and he can kiss goodbye to any of their votes.
His comments about the ‘fabric of Scottish society’ were ridiculous and if he believes that, he should be doing everything to change it, not give it life support.
At least he’s confirmed my views and voting intentions.
I see the RST and the JudeanRST are bumping their gums about buyers who wish to liquidate. they’ll get no support they say, boycott of the new owners if they plan the Big L.
Deary me. They just don’t get it do they?
I can see no other option but liquidation unless they get their ‘CVA’ (another cheats charter in my opinion)
They are still displaying all the signs of a group of people who want to be lead (and aren’t too bothered about being misled it seems) but want to take no responsibility themselves. It would appear that they are beyond help.
Good.
“It’s believed HMRC has seen a pattern emerging and decided to widen the net.”
LOL :D
The current position seems clear to me:
American bid- will liquidate
German bid – will liquidate
Singaporean bid – will liquidate
Bloo Knights- will liquidate (but can’t say in public)
Whyte and Hector anyone!
Okay I might be a bit dense and I did ask yesterday to no avail..
Starry’s question : why are Duff And Duffer taking bids for a club which to my knowledge has not been put on the market by the OWNER.
Can the Duff Bros sell the club without Whytey Bhoys consent??
Thanks in advance..
Smoke and a whole load of mirrors CSC
So Hector’s on to tax-avoiding MIBs now. One particular MIB who reffed a lot of Euro matches springs to mind. Maybe we’ll get our pound coin back.
Correct me if I’m wrong here.
Taking Dunfermline as a random example of the 10(!). Their average attendance is 4,981 and their 2 attendances against Rangers have been 7,577 and 7,464 (BTW against Hibs they had 6,780 and us 10,140).
Without a Rangers therefore their total SPL home attendance would be down by less than 6% if they had 2 games against them or less than 3% if they only had one game.
Are you honestly telling us Yorkston that a more competitive league and better product on the field wouldn’t make up this small difference?
Please grow a pair, use a bit of imagination and sort out your own club before constantly putting all the ails of the world at Celtic’s feet and the solution to all your problems the survival of Rangers.
serge spent a week in Petra in a few decades ago stayed in a bedoiun tent and explored as many corners as I could. I had explored a few Nabatean cities in Israel so this was a highlight for me. Still think of it as one of the most amazing places on earth. Hope its not too touridty now. I saw that they have dug out more chamber below the treasury and that they know whose mausoleum it was. The Roman amphitheatre and the temple way up top the giant djin snake and the crusader castle in the middle were my favourites although the rock cut suburban houses were equally impressive in a simple way. Hope to take Mrs Tauranga there when we get back on thr road not that she is interested in archeology but she will find a shop or three. Enjoy the adventures. Long time in suburbia when you ‘settle down’ but it also has its treasured moments. Hail Hail. STand up for the championees.