Rangers FC are to appeal against a £2.8m tax penalty imposed by HMRC for tax liabilities the club ran up during deals made under the extravagant administration management of Dick Advocaat…
Commenting on HMRCs Tax Penalty in April 2011, the now ex-chairman of Glasgow’s Ibrox football stadium, Alastair Johnston, said:
“It is a cash flow issue some-one has to pay for and we don’t have in our budget. That will have to be worked out but I don’t think it’s a deal breaker.”
Following HMRC’s tax penalty charge Dick Advocaat was literally shown the sidelines and subbed by Craig Whyte – who took over administration of Rangers FC from Dick Advocaat in May this year. Along with his new managerial responsibilities Whyte also inherited the club’s declared ‘non-negotiable’ tax penalty of £2.8m.
A source from Rangers FC, said:
“We have been in discussions with HMRC about the liability inherited from the old regime.
“We are planning to appeal and have been assured by HMRC that these negotiations will take their course. However, we are dismayed that there are people at HMRC discussing the club’s business with the media.
“We find that conduct astounding while discussions are ongoing with the intention of reaching a settlement.”
HMRC and Rangers tax penalty ‘shoot-out’ kicked-off last week (8-14 August, 2011)
Kevin Kinsella Jnr, of KinsellaTax, said:
“Premier clubs and players are prone to HMRC enquiries and usually there is a big payout by clubs and players.
“KinsellaTax are available to advise clubs and players. We are one of the few specialist companies who deal only in HMRC enquiries and investigations.”
As the tax penalty has already been imposed it seems unlikely that HMRC will disallow its charge.
Odds are that the club’s tax penalty will have to be paid in full; HMRC 1 – Rangers 0
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