|
|
14 Feb 2011
HMRC IS DUE TO FACE the Football Association Premier League (FAPL) in High Court tomorrow, over the controversial football creditor rule.
Both sides are expected to put forward their arguments in court. The Premier League is expected to ask for the case to be thrown out.
Further reading
The taxman is battling to have the football creditor rule overturned as it believes the rule - which prioritises players, managers and clubs in the event of an administration - is "unlawful". If a football club enters administration all football creditors are paid in full. The remaining funds are then divided among remaining secured and unsecured creditors.
In the Portsmouth FC administration the taxman is likely to be paid just one fifth of an estimated £37m it is owed.
A spokesman from HMRC said last year: "There is nothing in insolvency legislation that provides for unsecured debts due to 'football creditors' to be paid in preference to other unsecured creditors such as HMRC.
"Our view is that the practical application of the so called 'football creditors rule' may be unlawful."
The trial window will allow both sides to put forward their arguments and will be heard by a judge. If necessary the judge will allocate time and set a trial date.
You may also like
Search thousands of financial jobs:
Search thousands of financial jobs:
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
I hope they get nothing
I was advising a golf club on a huge VAT assessment which forced the directors to put it into administration and it was later liquidated. The technical grounds were better than 50:50 for the club but they could not pay the professionals to continue the appeal. I lost about £10,000. HMRC lost £600k and got £60k. They never even visited the club or had a meeting with it. I'm glad they got only 10% and I'm always hoping they get even less when they try to win technical points by insolvency proceedings.
Posted by: Jack Harper, 14 Feb 2011 | 12:45