Leaks & Lawsuits


It has been quite a busy few weeks for matters related to Rangers:  a tense, and ultimately comical, transfer window;  disgraceful acts of distraction involving the club’s PR “expert” to deflect from his embarrassment over the fact that he could not contain the Sheriff Officers story; the manoeuvrings related to ‘the other tax case’; and just a few hours ago, the posting of an MG01s filing onthe Companies House website revealing an assignment of the securitisation of the club’s catering revenues.

For the benefit of new readers to this site, I will recap the situation as it stands currently.  We will then look at this new mortgage filing and discuss what it means for Rangers FC and its dealings with HMRC.  Lastly (for today) we will discuss the accusations of leaks from HMRC related to the tax case and Rangers’ own conduct in this case.

  • Recap: The “Big” Case

Rangers FC operated a tax scam called an EBT (Employee Benefits Trust) for a decade beginning in 2001.  While EBTs could be operated legally, Rangers took this process beyond any established case law by making contractual payments that would normally be subject to PAYE and NIC through an EBT.  This was no innocent mistake as several of Rangers’ directors were fully aware that what the club was doing was illegal but continued anyway.
This scam has resulted in combined bills for underpayment, interest, and penalties of about £60m being billed to the Ibrox club just over a year ago.  Contrary to the lies disseminated in the Scottish mainstream press, the amounts ARE known to Rangers.  They are printed on the tax assessments in their possession.  Unable to pay such a crippling amount, Rangers appealed these assessments to a process called a First Tier Tribunal (FTT).  An FTT began hearing Rangers’ appeal and HMRC’s evidence against the club, in October 2010.  It did not complete within the scheduled two weeks and a three week continuance was arranged for April/May of 2011.  Evidence presentation was not completed in this window either and another continuance has been scheduled for November 2011.  I believe that the evidence against Rangers is overwhelming and that the club is simply dragging out this process as a way of effecting a stay of execution.

  • The”Wee” Tax Case

Another tax case emerged on the 1st of April of this year.  Rangers’ Interim Results for 2011 disclosed that there are additional tax bills for £1.9 million in underpayment, £0.9 million in interest, and, later, £1.4 million in penalties.  (The closer the penalty comes to 100% of the underpayment, the more it signals the extent of consciously illegal behaviour and deception which HMRC believes was involved).  Rangers claim that this bill was for a Discounted Options Scheme used to compensate players.  This does strike me as odd.  Directors and employees who expect to remain with a business for many years will accept options in the company as part of compensation packages, but footballers?
Not for the first time (nor the last) Rangers’ shareholders, supporters, and the British taxpayer are not being told the whole story.  This tale, as told by Rangers, does not add up.  I suspect that either club directors actually used this scheme to compensate themselves (leaving the business to pick up the tax bill) or Rangers were involved in a highly fraudulent scheme like stuffing offshore shell companies with cash and then issuing shares in such sham businesses to employees / players.  Whatever the truth, it will be far from the simple story that has been fed to the media to date.

The £2.8 million for underpayment and interest for the Discounted Options Scheme has actually been agreed with HMRC.  This means that it cannot be appealed.  It simply must be paid per the required schedule or Rangers face debt recovery action.  To this end, Sheriff Officers acting on the instruction of HMRC visited Rangers on the 10th of April to serve paperwork that represented a major escalation of this case: Rangers had until the 29th of August to pay this amount in full or face the start of court proceedings that could lead to an insolvency event.  (The £1.4 million penalty can be appealed, and therefore delayed, as it was not part of the agreement between the club and HMRC).  At the time of writing, the vast majority of the amount due for the “wee” tax bill remains unpaid, and after a day of feverish speculation, it appears that HMRC gave Rangers a final warning that court action to wind-up or put the club into administration is imminent.

  • The Summer 2011 Transfer Window

Craig Whyte’s modest actions over the close season and in the final weeks of the transfer window confirm that he is not a billionaire who will spend whatever it takes to make his footballing fantasies come true.  In fact, with a net spend that could have been financed purely from season ticket cash inherited when he took ownership of Rangers, Whyte might just as well be an unemployed security guard for all the investment of personal cash that has been required so far in his tenure as club custodian.  (More on this in the coming days).  The merits of the ins and outs of the player-trading will be borne out in time, but it is the bungling ineptitude that will be the lasting impression.  In particular, the primacy of public relations over matters of substance may have contributed to yesterday’s turning of the screw by HMRC.  I can only imagine that the debt recovery staff at the tax office would have watched with jaws agape as Rangers’ spin-meisters fed their media lapdogs stories of fantastic amounts being offered to secure the services of the club’s star striker, Nikica Jelavic.  Boasting to the world of rejecting offers of £9 million in cash while pleading poverty to a creditor will generate a lot of dissonance.  Frankly, even had the story been true it would have been remarkably stupid to make public. This event lays bare the extent to which Craig Whyte is being advised poorly by Jack Irvine and Gordon Smith.  That the story was a transparent fabrication designed to burnish Mr. Whyte’s good-guy credentials for the most naive sections of the Ibrox support just makes the situation comical.

  • Securitization / Assignment of Catering Revenues

With all of these issues taken together we can just cut to the chase: Rangers did not have the money to pay the “wee” tax bill.  Whyte’s business plan was to hope and pray for Champions’ League qualification and the additional £18-20 million in revenue (which would be mostly profit) that would accompany playing on football’s top stage.  Those of us who follow football closely could see that any plan that depended upon Champions’ League qualification for the Scottish champions through two qualifying rounds was madness.  Craig Whyte appears to have thought differently.

So Whyte is left to rob Peter to pay Paul and to try to gather cash to pay the “wee” tax bill any way possible.  Having spent a decent amount of the season ticket cash required to get the club through to when next season’s ticket renewals will start coming in, the club faces a cash flow crisis before the end of the season.  Whyte is frantically exploring every financial device available to try to make ends meet.

A previous attempt to securitize future season ticket sales in return for a large amount of cash now fell through.  (Possibly in part due to the excellent forensic detective work on the part of readers of this blog).    Late yesterday, Rangers posted an MG01s Form on the Companies House website related to the assignment of a mortgage for Rangers’ catering revenues.

Regular posters to this site will doubtless apply their considerable expertise in dissecting this filing, but I will take a first stab at explaining this for the layman.  The Rangers Football Club plc (i.e. Rangers FC) had previously “sold” its catering rights to Azure Catering Services, a division of Sir David Murray’s MIH Ltd.  A few years ago, MIH sold Azure and Rangers reacquired the rights to their own catering revenues.  These catering revenues have now been sold, for the indefinite future, to a finance company called Close Leasing Limited, a firm which Whyte and other Rangers directors have had dealings related to some of their other distressed asset purchases.  A piece of the family silver has been sold off to fend off an insolvency event.

While the MG01s form does not specify the amount, Rangers’ 2010 Annual Report states that “events and catering income increased by 8% to £2.0m due to our participation in Europe.”  (However, 2009 was also a Champions’ League season for Rangers).  Without further European revenues, this income might be expected to be as low as £1.4m for this season.  (We also do not have information on how much events contributed to this profit).  Selling a cash stream under these circumstances is to present one’s posterior while bent over a barrel.  The discount rates that will be applied to valuing this cashflow will be horrendously high- as much as 15-20%.  This could see Rangers raise as little as £7 million in return for giving up this income every year into the future.  Subtracting events money and Whyte could be left with less than £5 million for this transaction.  However, £5 million would be enough to drive the wolf from the door for now.

So, I expect that Rangers will survive the immediate crisis presented by the “wee” tax case.  Operating without a credit relationship with a bank, a cloud over the club’s ability to get to the end of the season without similar family silver sales remains.  As for the “big” tax case?  Unless there is a silver mine discovered under the Copland Road Stand, Rangers have zero prospect of being able to pay that bill when it hits.

  • Leaks & Lawsuits

The last point to address for today is the recent spate of “Rangers angry at HMRC leaks” stories that have been spread by the usual suspects via their lackies in the Scottish media.  As diversionary tactics go, I imagine this one will help develop a unifying sense of being under siege among Rangers fans, so it may serve its purpose.  However, let us take a look at the facts.

The first journalist to publish specifics about Rangers’ tax crisis was Darrell King.  He not only got his story correct in that Rangers’ existence is at stake, but he got the amounts bang-on too.  Darrell King’s source?  Rangers director Dave King (no relation).  Dave King did not fancy Sir David Murray’s favoured takeover candidate at the time and was leaking to all and sundry to try to delay things until such time as his own tax troubles in South Africa might be cleared up.  The recent breaking story from FollowFollow.com’s Mark Dingwall claiming that HMRC had moved to freeze Rangers’ bank accounts (which I now understand to be fundamentally correct despite Rangers’ denials); where did he get his information?  Dingwall’s sources are invariably within Rangers FC.  The news that Gordon Smith was going to become Ally McCoist’s new boss?  Phil MacGiolla Bhain managed to tell the ordinary Rangers fan before McCoist himself knew anything about it.  I don’t suppose that there are any disgruntled ex-employees armed with explosive information on Rangers?

Rangers have not hesitated to plant disinformation and outright lies about the case when they thought that it suited them.  The downside of such short-sighted moves is that those who do have access to the facts have become increasingly angry that the truth- the mortal danger which the club faces- has been withheld from the only people who care enough to do anything about it.  Blowback.  The more Rangers’ executives have lied, the more people with access to the story have felt obligated to get the truth out.  Leaking information about the tax case does not help HMRC.  The case(s) will be determined through the normal legal channels and the outcome will be what it always would be.  Many Celtic fans will enjoy the discomfort of their rivals’ realisation of the scale of this problem.  However, a bit of glee would not be something that a wise Celtic supporting tax collector would risk a career over.  However, leaks do serve to alert Rangers fans.  Work it out.

My own motivations have always been primarily to highlight the corrupt nature of the Scottish media.  (Remember Graham Speirs’ Rangers-fed dismissals of the tax bill amounts as being wildly too high?)  My sources?  Well, they have developed a lot since starting this blog, but I am not going to indulge in a guessing game with anyone.

Anyway.  How are Rangers’ lawsuits against HMRC for leaking coming along?  Why would Rangers be so angry about falsehoods?  Afterall, this blog is “99 percent crap” according to Craig Whyte.  Surely Craig is not admitting that the substance of these stories is in fact true?

About rangerstaxcase
I have information on Rangers' tax case, and I will use this blog to provide the details of what Rangers FC have done, why it was illegal, and what the implications for what was (updated) one of the largest football clubs in Britain.

495 Responses to Leaks & Lawsuits

  1. tomtom says:

    Didn’t know you were friends with Vin. I know his sister Vin Rose very well – spend most nights in her company.

  2. RTC, any thoughts on the VAT rumours/ potential ‘alleys’ (Iain) to go down?

    I may consider starting up the ‘Rangers VAT-Case’ website

    I would not get too excited about the VAT angle (just yet).
    If Rangers make quarterly VAT returns, it is possible/probable that a substantial amount of the VAT taken from season ticket receipts has not been remitted to HMRC yet. This might mean that £2.8m arrested by HMRC includes cash that the club was planning on paying for VAT. (or PAYE/NIC for that matter).

    However, if Rangers cash has now been depleted to the point where they cannot operate, other bills, from the £1.4m penalty to player wages would send them into receivership/administration before a current VAT bill pulled them under.

    The idea is not without merit and it shows the extent to which Rangers’ existence hangs by a thread.

  3. Hugh McEwan says:

    Do you genuinely think their cash flow is so bad that they may start to struggle paying wages and bills within the next few months.

  4. Hugh McEwan says:

    04/09/2011 at 9:32 pm(Edit)

    Shug, relax and enjoy your evening,. You have not misled anyone. I was just taking the opportunity to tell people about the wonderful film I saw. 😉
    Enjoy your whisky and reflect on a most satisfying few days. No Sunday blahs for me tonight. This has been a very enjoyable weekend to say the least.

  5. boabbysixkiller says:

    what happens if they were to go into administration now … would this have any effect on the big tax case?

  6. Hugh McEwan says:

    I have thoroughly enjoyed it I have to say,

    In no small part due to your good self, Sir.

  7. Paulie Walnuts says:

    RTC – I’m still awaiting moderation from 5.10! I don’t think it crosses any boundary.

    My point about VAT is not that there is an imminent VAT liability they can’t meet. On the contrary I think they can pay both the small tax bill and the VAT. They have a net credit balance with Bank of Scotland as is demonstrated by the fact that the HMRC arrestment caught funds. An arrestment served on an account in overdraft is worthless.

    The question is why have the money yet not pay the tax. I suppose they could just be hoarding cash knowing that there might not be too much more of it coming in for a while and they will have wages etc to pay going forward. My theory is the gameplan is not to pay anyone, leave the money in the bank and on insolvency lo and behold it all goes to Wavetower.

  8. droid says:

    is it not about time we had a chorus of –

    stand up for the RTC, stand up for the RTC, stand up for the RTC, stand up for the RTC,

    stand up for the RTC, stand up for the RTC, stand up for the RTC, stand up for the RTC

  9. Hugh McEwan says:

    04/09/2011 at 9:41 pm(Edit)

    Re: Rangers cashflow.
    Before the urgency of the wee tax case rose to prominence I have doubted whether Rangers could get through this season without European football. The question was when.
    That the wee case has taken £2.8m (with another £1.4m to be appealed) does make things extra difficult.

    Selling a player for a good price was the obvious answer but they “elected” to not do this.

    I do not have a detailed enough picture of their pattern of expenses and income to make an accurate prediction of when (or if with certainty) they will run out of cash, but it does look very likely.

  10. Lord Wobbly says:

    Paulie Walnuts says:
    04/09/2011 at 9:46 pm
    RTC – I’m still awaiting moderation from 5.10! I don’t think it
    crosses any boundary.
    ~~~~~~~~~~~~~~~~~~
    Likewise my post of 7.36. Just a bit of fun…..you know me 😉

  11. TheBlackKnight says:

    RTC@9.35

    “However, if Rangers cash has now been depleted to the point where they cannot operate, other bills, from the £1.4m penalty to player wages would send them into receivership/administration before a current VAT bill pulled them under.

    The idea is not without merit and it shows the extent to which Rangers’ existence hangs by a thread.”

    Perhaps the recent reconfiguring of shares in MHG (which could have been around £400k) and the MG01 are more telling than first thought if the above scenario is possible.

  12. tomtom says:

    Paulie,

    They may have had enough money to pay either the tax bill or the vat but not both – hence the delay in settling the tax bill.

  13. Hugh McEwan says:

    Paulie Walnuts says:
    04/09/2011 at 9:46 pm

    RTC – I’m still awaiting moderation from 5.10! I don’t think it crosses any boundary.

    My point about VAT is not that there is an imminent VAT liability they can’t meet. On the contrary I think they can pay both the small tax bill and the VAT. They have a net credit balance with Bank of Scotland as is demonstrated by the fact that the HMRC arrestment caught funds. An arrestment served on an account in overdraft is worthless.

    The question is why have the money yet not pay the tax. I suppose they could just be hoarding cash knowing that there might not be too much more of it coming in for a while and they will have wages etc to pay going forward. My theory is the gameplan is not to pay anyone, leave the money in the bank and on insolvency lo and behold it all goes to Wavetower.

    ———————————————————–

    As I said earlier that gets perilously close to evasion.

    To then give it to Wavetower instead, even in an insolvency, would be leaving themselves open to charges of laundering the proceeds of criminal conduct.

    I think they will be playing a bit of brinkmanship, however as far as the VAT is concerned you don’t feck with the tongs.

  14. Just cleared posts from moderation.

    Don’t use the H-word on here. Once again, I do not consider the word to be in any way sectarian but it is an unpleasant term. I fully welcome anyone, Rangers fans, Jambos etc. to participate on here and the H-word is just guaranteed to result in a tit-for-tat escalation into the usual sectarian and tribal bollocks that can be read in 100 other websites.

    So we don’t use that term on here.

  15. Johnboy says:

    Whyte is currently a director of Tixway UK Ltd and Pritchard Stockbrokers Ltd.
    He was previously a director of Strident PLC (May 1996 to May 1997) and Merchant Strategic Renewal PLC (September to October 2010).
    He was a Director of the following companies that have been dissolved:
    Whyte Plant Ltd (Appointed 1990, dissolved 1995)
    Whyte Hire Ltd (1989-95)
    Whyte Forbes Contract Services Ltd (1991-95)
    Intercity Guards Ltd (1991-95)
    Whyte Communications Ltd (1990-94)
    USG Ltd (1993-96)
    He was a Secretary of the following companies that have been dissolved:
    Zemfill PLC (August 2010-May 2011)
    Intercity Guards Ltd (1991-95)
    Whyte Communications Ltd (1990-94)
    CSS 1996 Ltd (1995-97)
    He was also a director of the following firms which were dissolved after he resigned his directorships:
    Hire Access Group Ltd (Appointed January 1996, Resigned October 1996, Company Dissolved August 2001)
    Vital Security Ltd (January 1996, October 1996, August 2000)
    HAG 1996 Ltd (December 1995, February 1996, June 1997)
    VPS 1996 Ltd (December 1995, February 1996, July 1998)
    Vital Plant Services Ltd (January 1996, October 1996, May 2002)
    ISS 1996 Ltd (Appointed October 1995, date resigned unknown, dissolved July 1996)
    Pelcroft Ltd (Appointed November 1994, date resigned unknown, dissolved July 1999)
    Vital Holdings Ltd (January 1996, September 1997, August 2005)
    Cathedral Security Services (Northern) Ltd (January 1996, March 1996, January 2000)
    In-Store Security Services Ltd (January 1996, October 1996, December 2000)
    CSS 1996 Ltd (July 1995, February 1996, July 1997)
    Cairnhall Ltd (February 1994, January 1996, March 1998)
    CCS Ltd (December 1995, January 1997, May 1998)
    Kristen Management Services (January 1996, October 1996, September 2000)

  16. Hugh McEwan says:

    rangerstaxcase says:
    04/09/2011 at 9:49 pm

    Hugh McEwan says:

    04/09/2011 at 9:41 pm(Edit)

    Re: Rangers cashflow.
    Before the urgency of the wee tax case rose to prominence I have doubted whether Rangers could get through this season without European football. The question was when.
    That the wee case has taken £2.8m (with another £1.4m to be appealed) does make things extra difficult.

    Selling a player for a good price was the obvious answer but they “elected” to not do this.

    I do not have a detailed enough picture of their pattern of expenses and income to make an accurate prediction of when (or if with certainty) they will run out of cash, but it does look very likely.
    ————————————————–

    Mayhap the support should not have had such a public and vehement anti Lloyds campaign. I suspect the bankers are even more disinclined to provide credit. Especially if they have had the bulk of their debt cleared.

    Simple and honest question. Who would provide Rangers with credit just now, and on what terms.

  17. ramsay smith says:

    Lord Wobbly says:
    04/09/2011 at 9:51 pm

    A wee word beginning with h triggers the automatic filter.

  18. Hugh McEwan says:

    04/09/2011 at 9:52 pm(Edit)

    I understand that the R and the C parts of HMRC are aligning legal powers, but I think that VAT matters still carry special enforcement powers. You are correct. You do not mess about with your VAT collections. If Rangers cannot meet their next scheduled VAT return, they would be in a world of hurt.

  19. Lord Wobbly says:

    rangerstaxcase says:
    04/09/2011 at 9:54 pm
    Just cleared posts from moderation.
    Don’t use the H-word on here.
    ~~~~~~~~~~~~~~~~~~~~~~~
    I didn’t RTC. Not sure what flagged my post at 7.36. Not Wiggy surely…..

  20. Lord Wobbly says:

    04/09/2011 at 9:58 pm(Edit)
    ____________________________________________________
    There are a few SPAM filter rules on the site too. If you post more than 1 URL etc., things that follow patterns of spammers, then it can get trapped too.

  21. Hugh McEwan says:

    rangerstaxcase says:
    04/09/2011 at 9:57 pm

    Hugh McEwan says:

    04/09/2011 at 9:52 pm(Edit)

    I understand that the R and the C parts of HMRC are aligning legal powers, but I think that VAT matters still carry special enforcement powers. You are correct. You do not mess about with your VAT collections. If Rangers cannot meet their next scheduled VAT return, they would be in a world of hurt.
    ———————————————-

    From memory all of the enforcement powers were effectively cancelled and new ones brought in under a finance act. I can’t remember which one. Basically what they did was take all of the powers and extended them to all of the taxes they collected. So former Customs powers could be used for former Revenue offences and vice versa.

    However, and this is an important issue, they have powers for civil matters and powers for criminal matters. they cannot use the powers from one to investigate the other.

  22. Laughing Tim says:

    It was me who used the H word at 12.24. Apologies.

  23. Lord Wobbly says:

    I used the word ‘hundred’,maybe that caused it?

  24. Lord Wobbly says:

    cracked it. You can’t write 100 using the word. Presumably any word beginning with the H bomb

  25. Hugh McEwan says:

    RTC you seem to have the string “hvn” obviously with a “u” blocked.

    There should be a setting where it isn’t blocked as part of a word, just when it is on it’s own.

  26. Regarding the rumour that Mr. McCoist has been unable to reach Mr. Whyte, I can say that I have heard similar from a very credible source. Mr. Whyte, it appears, has the leadership skills of the famous Captain Smith of the Titanic. Whyte is apparently impossible to reach and his underlings have amused themselves by engaging in vicious verbal assaults upon one another.

  27. TheBlackKnight says:

    Well if you read the ‘bear-pit’ websites they would have you believe HMRC are a financial wing of the Opus Dei and the ‘RC’ stands for Roman Catholics!

    Apparently THEY have jobs in Government and Law nowadays!

    We are in the 21st century? Arent we? :/

  28. Hugh McEwan says:

    04/09/2011 at 10:14 pm(Edit)

    Yes- I should. However, I spend too much time on this blog as it is. It will just be much easier if people avoid that particular 3-letter string.

  29. Johnobhoyo says:

    RTC @ 9.18

    Yes that was the point I was trying to make – BQ and other advisors did their job if they saw the risks we were taking with the Juninho EBT (interesting to see who actually gave it the go ahead – Ian Mcleod maybe or even the bold Dermot – but that’s for another day) and called a halt to it.

    If the dubious use of these EVTs was widespread I’d expect HMRC will have a few more cases lined up for those clubs who’ve taken liberties and not paid recompense to Betty W.

    One final point on BQ – he may have known his stuff when it came to the financial machinations of helping to run a football club, a pity he had some trouble with dialling a phone number at times (a bit harsh from me I’ll admit).

    Keep up the good work please!

  30. Hugh McEwan says:

    rangerstaxcase says:
    04/09/2011 at 10:16 pm

    Hugh McEwan says:

    04/09/2011 at 10:14 pm(Edit)

    Yes- I should. However, I spend too much time on this blog as it is. It will just be much easier if people avoid that particular 3-letter string.

    LOL true, we should all try to shvn it, and certainly not use phrases like hvndred of thousands.

  31. Hugh McEwan says:

    TheBlackKnight says:
    04/09/2011 at 10:15 pm

    Well if you read the ‘bear-pit’ websites they would have you believe HMRC are a financial wing of the Opus Dei and the ‘RC’ stands for Roman Catholics!

    Apparently THEY have jobs in Government and Law nowadays!

    We are in the 21st century? Arent we? :/
    ————————————————————-

    I have actually read posts there where they say Catholics have “infested” banks, the legal system, the media etc.

  32. TheBlackKnight says:

    Lord Wobbly says:
    04/09/2011 at 10:05 pm
    cracked it. You can’t write 100 using the word. Presumably any word beginning with the H bomb”

    LW Better not mention ‘hvn-dread’ 😉

    Sorry in advance RTC couldn’t resist 😉

  33. Paulie Walnuts says:

    Hugh, its not evasion. That’s the evil genius of it.

    You pull the trigger on administration at point of maximum cash. That will include the VAT on the sason ticket money, which will have been collected from the fans but will not have fallen due for payment to HMRC yet. So they will not have failed to make any ayment which is due.

    They don’t have to take any positive steps to pay it to Wavetower. That Wavetower get it is just the inevitable consequence of the fact that Wavetower own the Lloyds floating charge.

    Its no different than if Murray had put them into administration before Whyte came along. LLoyds would have had to be paid in full before anyone else got a penny. The essential point is the more cash you keep, and the fewer creditors you pay before it all goes sour the better it is for the secured creditor.

  34. Lord Wobbly says:

    I have a hvnch that a hvndred hvngry Rangers fans might want to see Whyte hvng. Hvnts

  35. AllWhyteOnTheNight says:

    Craig Whyte knows that sometimes people do get locked up for this sort of thing.

    Google “liz clow apc”

    Plant hire at around about the same time Whyte was in that business.

    I wonder if their paths ever crossed…….

  36. TheBlackKnight says:

    Hi Hugh,

    certain ramblings of a politically driven failed artist in the late 1930’s spring to mind!

  37. tomtom says:

    Paulie Walnuts says:
    04/09/2011 at 10:22 pm
    Hugh, its not evasion. That’s the evil genius of it.

    You pull the trigger on administration at point of maximum cash. That will include the VAT on the sason ticket money, which will have been collected from the fans but will not have fallen due for payment to HMRC yet. So they will not have failed to make any ayment which is due.

    They don’t have to take any positive steps to pay it to Wavetower. That Wavetower get it is just the inevitable consequence of the fact that Wavetower own the Lloyds floating charge.

    Its no different than if Murray had put them into administration before Whyte came along. LLoyds would have had to be paid in full before anyone else got a penny. The essential point is the more cash you keep, and the fewer creditors you pay before it all goes sour the better it is for the secured creditor.

    _________________________________________________________________________

    Hence the Close Finance deal perhaps? I wonder what else he could mortgage. Is it possible he could mortgage the stadium?

  38. Duggie73 says:

    PaulieWalnuts
    it’s not very profitable though, is it?
    Whyte gets the Lloyds loan money back but it isn’i a profit.
    Are you suggesting that Whyte is now looking to cut his losses and run just as much as SDM did?

  39. TheBlackKnight says:

    Lord Wobbly says:
    04/09/2011 at 10:23 pm
    I have a hvnch that a hvndred hvngry Rangers fans might want to see Whyte hvng. Hvnts

    PMSL!!!!!!!

    Vndovbtedly ! 😉

  40. Hugh McEwan says:

    Paulie

    You have a point so long as they go into administration prior to the VAT return being submitted.

    However the administrator would still have to render that return.and include those season ticket takings on it. Establishing the debt. I know it wouldn’t be collected as HMRC do not have proffered status, but it would be part of their debt and go towards what percentage of the overall amount is owed to HMRC. Even more reason for them blocking any deal and insisting on liquidation.

    Just as an aside and a reasonably esoteric one. Taking steps to fraudulently evade VAT is the effectively the same offence as actually doing it. It also attracts the same penalties.

  41. AllWhyteOnTheNight says:

    As Paulie has outlined this is the game plan. Only thing is he is maybe being pushed there quicker than he would have liked. Champions League money would have allowed him an even better point at which to push the button.

    HMRC are on to him and that is also causing him to have to busk it now.

    The plan is out the window and he either starts paying some bills and eat into that cash or takes his brave pill and goes nuclear.

    He will also want to go into Admin sooner rather than later to cut down the arrestment so that it can go straight to the Administrator then back to Wavetower rather than HMRC.

  42. Lord Wobbly mvst be from Milngavie! 🙂

  43. Chris D says:

    Do you think Whyte really believed Rangers would get into the Champions League?
    2 qualifying rounds isn’t an easy task, plus their recent record isn’t up to much (1 win in 24)

    Surely a well-informed fan like him would see how hard it is to get into the CL.

    Maybe Whyte really is just a clueless moron who has no idea what he’s let himself into.
    Did he conduct the due diligence himself, or have someone else do it and give him the feedback?

  44. droid says:

    Does anyone on here know how to use this to aid our work –

    https://scraperwiki.com/request_data/#public

  45. Jean says:

    Lord wobbly without your occasional bout of insanity my day would be a lot duller :O)

  46. Chris D says:

    04/09/2011 at 10:53 pm(Edit)

    Do you think Whyte really believed Rangers would get into the Champions League?
    2 qualifying rounds isn’t an easy task, plus their recent record isn’t up to much (1 win in 24)

    Surely a well-informed fan like him would see how hard it is to get into the CL.

    Maybe Whyte really is just a clueless moron who has no idea what he’s let himself into.
    Did he conduct the due diligence himself, or have someone else do it and give him the feedback?

    You are so close to the bullseye and you do not even know it! 🙂

  47. gunnerb says:

    droid says:
    04/09/2011 at 9:54 pm

    Will this shake the unconscious state of denial?

    http://sport.scotsman.com/top-stories/Adam-shakes-Ibrox-pillars-with.2299216.jp
    ——————————————————————————————————-

    Luke 4:24

  48. Jean says:

    rangerstaxcase says:
    04/09/2011 at 11:06 pm

    You are so close to the bullseye and you do not even know it!

    Perhaps it’s because Ellis did all the background work and gave it to him second hand?

  49. TheBlackKnight says:

    Re: CW
    He is a risk taking ‘billionaire’ venture capitalist after all!

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