BusinessBusiness RecoveryHMRC serve 25 winding-up petitions to FA clubs

HMRC serve 25 winding-up petitions to FA clubs

A High Court hearing on football insolvency rules has unveiled that the taxman issued 25 winding-up orders in two years

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.

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