HMRC AND THE FOOTBALL ASSOCIATION Premier League’s (FAPL) court battle over insolvency rules is expected to be adjourned today, Accountancy Age can reveal.
The two sides were expected to put forward their arguments to the High Court today, with a trial date expected to follow shortly after.
The taxman is battling to have the football creditor rule overturned as it believes the rule – which prioritises the payment of players, managers and clubs in the event of a club entering administration – is “unlawful”.
A source close to the case said the taxman is “expecting” to adjourn the case for at least two months.
HMRC believes one of the two legal arguments it is basing its case around is currently in the process of going through another court case. A source close to the issue said HMRC wants to see what happens with that case before its own case goes to court.
The taxman filed papers to the Royal Courts of Justice on 18 May labelling the football creditors rule as “unlawful” because it believes the rule is outside the laws of insolvency.
One example that angered HMRC was in the Portsmouth FC administration, where the taxman is likely to be paid just one-fifth of an estimated £37m it is owed.
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