HM REVENUE & CUSTOMS has issued 25 winding-up petitions against Football Association clubs in two years.
HMRC‘s QC Gregory Mitchell highlighted the figure in a recent High Court hearing where the taxman is battling against the football league’s controversial Football Creditor Rule (FCR) which prioritises some creditors over others, The Guardian reports.
Mitchell argued the large number of petitions was not against 25 different clubs as many winding-up orders were against repeat offenders.
The FCR prioritises the payment of football creditors such as other clubs and players ahead of other creditors, which HMRC believes is unlawful and outside the rules of insolvency – that all creditors should be treated equally.
The first argument put forward by the taxman highlighted the rule is discriminatory because it does not treat all European football creditors the same.
However, presiding judge Mr Justice David Richards said that argument was better served as a seperate challenge.
The court case ended earlier this week with a judgment likely to be made early next year.
Manufacturer DMG Steelworkers has been sold out of administration in a pre-pack deal by insolvency and restructuring firm CVR Global
By threatening creditor returns, the government could undermine the UK’s World Bank insolvency ranking and cost creditors £8m a year, trade body R3 warms
Lee De’ath and Richard Toone, partners at CVR Global, were appointed joint-administrators of Lexden Centre (Oxford) Limited, trading as Colchester English Study Centre (CESC), on 29 June 2016
Peter Saville, Ryan Grant and Anne O’Keefe of AlixPartners will now become the supervisors of the CVA and monitor the implementation of the proposal