Administration

[Bluedell 5,679]

I'm sure we'll all be watching very closely the outcome of the hearing but, regardlss of whos rumour is most accurate, if it goes against us, i'm sure there is a plan in place that will portect as much of the club as possible

 

If the case does ultimately go against us then, yes, administration is the most likely outcome. It will be interesting to see who and what are protected if this does come about.

[forlanssister 3,114]

That part is bullshit. The stadium and Murray Park are owned by Rangers and the players must be contracted to the club as well or else they would not be allowed to play with the club.

 

After the hearing there are 2 options. We win the case and we will therefore not go into administration or we lose the case and appeal and will therefore not go into administration.

 

Option 3, We lose the case and decide not to appeal therefore inevitably going into administration.

[Jim1955 12]

There is a plan and the wagons are already circled.

[craig 5,199]

There have been players that are 'owned' by others and play for teams. Was that not the case with Tevez prior to going to man u? Also, there are players that set themselves up as companies to avoid paying 50% tax and only having to pay corporation tax on their profits.

 

Why couldn't the contracts be with the holding company Wavetower?

 

I hope they dont do this in the UK because they will face a pretty hefty tax liability, plus interest, plus penalties. Setting up as a corporation in the UK whereby you only have ONE client is, effectively, Employment and would be taxed as such.

 

Setting up a corporation would NOT work in this instance.

 

In order for a corportation to work you must have more than one client - it is the same as being a self-employed contractor - if you only have one client then HMRC have a very solid case of determining that as being employment rather than Schedule D self employment.

[Stimpy 0]

If the case does ultimately go against us then, yes, administration is the most likely outcome. It will be interesting to see who and what are protected if this does come about.

 

Would there be an option to pay the bill back in instalments over x amount of years?

[Bluedell 5,679]

Would there be an option to pay the bill back in instalments over x amount of years?

 

It would be an option but given the fact that CL football looks unlikely over the next few years, I doubt that the directors would be able to guarantee a payment of, say, £10m pa over a 5 year period and they would therefore be obliged to take the company into administration.

 

I understand that HMRC are taking a harder line to payment plans these days.

[Bluedell 5,679]

Option 3, We lose the case and decide not to appeal therefore inevitably going into administration.

 

Yeah, that's also a possibility, although an unlikely one on the face of it, if the directors do not welcome administration.

[Zappa 0]

Surely there's also the option that if we lose the case, we don't appeal or go into administration because HMRC offer us a low(ish) settlement figure so that they at least get some money out of the whole case. For example, if they offered a £10m settlement, then it's not necessarily a figure which would force administration.

[Bluedell 5,679]

Surely there's also the option that if we lose the case, we don't appeal or go into administration because HMRC offer us a low(ish) settlement figure so that they at least get some money out of the whole case. For example, if they offered a £10m settlement, then it's not necessarily a figure which would force administration.

 

I dioubt that they'd do that. Sets a prededent that would be unacceptable to them. It's not their cash, it's the public's so they would not settle for a lower amount.

[craig 5,199]

I dioubt that they'd do that. Sets a prededent that would be unacceptable to them. It's not their cash, it's the public's so they would not settle for a lower amount.

 

They might have done in the past but given the 2008 financial meltdown plus all the bailout money it would be unacceptable in the current climate IMO.