Rangers Insolvency

Over the past month there have been some interesting developments, however, the biggest change in this case is the stance being taken by HM Revenue and Customs. HM Revenue and Customs are not known to be shrinking violets where insolvency is concerned, but their extremely tough stance in the Rangers case is something new.

HM Revenue and Customs are owed more than 25% of Rangers’ current debt. They had indicated prior to the Creditors Meeting on 14th June that they would reject the Company Voluntary Arrangement (CVA) being proposed at that meeting. There were two aspects to this decision. The first related to how players at Ibrox had been paid. Rather than being paid using PAYE, players set up trusts and their wages were paid into those trusts, avoiding the payment of tax and national insurance contributions. A decision is awaited from a tribunal as to whether this arrangement is legal. If it is not, Rangers become liable for the unpaid tax and national insurance on payments made into trusts, increasing the debt owed to HM Revenue and Customs

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