M3NTAL
Banned
http://www.bbc.co.uk/news/uk-scotland-glasgow-west-17026172
HMRC to ask court to put Rangers into administration
Rangers has filed for protection against its creditors
HM Revenue and Customs (HMRC) is set to ask the Court of Session to put Rangers Football Club into administration.
The legal move counters the club's bid on Monday to file for protection against its creditors.
The papers served on behalf of Rangers directors would give the club 10 days to resolve its differences with HMRC.
However, the response from HMRC suggests it is seeking to take charge of events. The court hearing is set to take place on Tuesday morning.
If Rangers is placed in administration the club would suffer an immediate 10-point penalty from the Scottish Premier League.
Owner Craig Whyte confirmed on Monday that the club had filed legal papers at the Court of Session in Edinburgh to appoint administrators.
Tax dispute
It was thought that the club had 10 days to make a decision on whether to proceed, but the HMRC action may change the dynamic of the situation.
The two parties are at loggerheads over a disputed tax bill and penalties of up to £49m.
HMRC believes the Ibrox club owes the cash over its use of Employment Benefit Trusts (EBTs) to pay staff over a 10-year period.
Craig Whyte is believed to believed to be Rangers' secured creditor
It alleges the Ibrox club did not administer the scheme properly and underpaid tax.
Rangers disputes this and has contested the claim in a first tier tax tribunal, which is due to report within weeks.
After the club signalled its intention to go into administration, owner Craig Whyte said the eventual tax liability facing Rangers could be as high as £75m - a sum it would be unable to pay.
He said the best outcome would be to reach a creditors agreement which would allow the club to continue trading.
Mr Whyte is believed to be a secured creditor of Rangers and could collapse the club if HMRC block a creditors agreement.
The chairman could opt to pursue the legal routes of receivership or pre-pack administration to avoid paying any tax liabilities.
These routes would involve Rangers' assets being transferred to a new company or companies and the old club - formed in 1873 - being left behind with the unpayable debts. It would, almost inevitably, be wound up.
In these cases, HMRC, as an unsecured creditor, would receive very little if anything.
The moves over administration from HMRC could be viewed as part of ongoing manoeuvres to exert some control over any insolvency process.
HMRC to ask court to put Rangers into administration
Rangers has filed for protection against its creditors
HM Revenue and Customs (HMRC) is set to ask the Court of Session to put Rangers Football Club into administration.
The legal move counters the club's bid on Monday to file for protection against its creditors.
The papers served on behalf of Rangers directors would give the club 10 days to resolve its differences with HMRC.
However, the response from HMRC suggests it is seeking to take charge of events. The court hearing is set to take place on Tuesday morning.
If Rangers is placed in administration the club would suffer an immediate 10-point penalty from the Scottish Premier League.
Owner Craig Whyte confirmed on Monday that the club had filed legal papers at the Court of Session in Edinburgh to appoint administrators.
Tax dispute
It was thought that the club had 10 days to make a decision on whether to proceed, but the HMRC action may change the dynamic of the situation.
The two parties are at loggerheads over a disputed tax bill and penalties of up to £49m.
HMRC believes the Ibrox club owes the cash over its use of Employment Benefit Trusts (EBTs) to pay staff over a 10-year period.
Craig Whyte is believed to believed to be Rangers' secured creditor
It alleges the Ibrox club did not administer the scheme properly and underpaid tax.
Rangers disputes this and has contested the claim in a first tier tax tribunal, which is due to report within weeks.
After the club signalled its intention to go into administration, owner Craig Whyte said the eventual tax liability facing Rangers could be as high as £75m - a sum it would be unable to pay.
He said the best outcome would be to reach a creditors agreement which would allow the club to continue trading.
Mr Whyte is believed to be a secured creditor of Rangers and could collapse the club if HMRC block a creditors agreement.
The chairman could opt to pursue the legal routes of receivership or pre-pack administration to avoid paying any tax liabilities.
These routes would involve Rangers' assets being transferred to a new company or companies and the old club - formed in 1873 - being left behind with the unpayable debts. It would, almost inevitably, be wound up.
In these cases, HMRC, as an unsecured creditor, would receive very little if anything.
The moves over administration from HMRC could be viewed as part of ongoing manoeuvres to exert some control over any insolvency process.
