HMRC Appeal Statement (In response to that of RIFC PLC)

Blogger Paul McConville commented:-

“Many football fans and legal commentators were surprised by the First Tier Tax Tribunal verdict last November and will not be disappointed that HMRC have now launched an appeal against their judgment.

“The ruling of the First Tier Tax Tribunal does not affect the operations and the financial position of this blog as it stands today and the appeal will have no effect on us as this is an historic case for The Rangers Football Club plc (‘oldco’).

“As HMRC stated last June when they decided to vote against the proposed ‘oldco’ CVA, no tax liabilities relating to ‘oldco’ would transfer across to this blog. HMRC would undoubtedly also reaffirm this position to my tax adviser, Deloitte Del Boy.

HMRC Given Leave to Appeal Tribunal Decision re MIH/”Rangers” – Plus Clarification of “Tomo Blog”

As broken by Alex Thomson of Channel 4 News yesterday, HMRC have been granted leave to appeal against the majority decision in the EBT tax case known to one and all now as the “Big Tax Case”( © RangersTaxCase.com.)

After a flurry of anger on Twitter and elsewhere about this “leak” to Mr Thomson, and even more misplaced anger by people who thought this meant the appeal itself had been decided, Mr Thomson published a blog post on the subject. You can find it here.

As far as leave to appeal being granted was concerned, no one I spoke to with knowledge of the appeal system thought that the application for leave would be refused. An appeal can only be taken forward on a question of law.

What, some have cried, was the question of law in this case?

The answer to that question is very simple. (Though the answer to the legal question is not).

Put simply the majority interpreted the legislation and case law to allow them to look at the form of what was done whilst the minority judge applied the same law and reached the conclusion that the substance of what was done was more important than the form.

Therefore there is a clear distinction about how the law should be applied.

That is, undoubtedly, a “question of law”.

Charles Green on How the Big Tax Case Harmed Rangers – and Why He is Wrong

Mr Green, who seemed unusually quiet for a couple of days, but was no doubt involved meeting fund managers and investors for his share issue and compiling the Share Prospectus which he told Rangers fans would be out by the middle of November, has spoken out on the official Rangers website about the Big Tax Case outcome.

You can find the whole piece here.

As the article is written on the official site by Lindsay Herron it is safe to assume, I suggest, that the commentary and narrative around Mr Green’s quotes can also be taken as the “Rangers position”.

My comments on parts of the piece are in bold below the relevant section. It is fair to say that I do not think Mr Green is correct in much of what he had to say (although I am sure that would not concern him one iota).

———————————————————

CHARLES GREEN has expressed his anger and dismay at the timing of the verdict of the First Tier Tax Tribunal as it has massively affected the current status of Rangers.

Despite a concerted campaign from certain quarters, which was often hateful, that decided that Rangers were guilty of “cheating” it has been proved that is not the case.

Hearts – “A Call To Arms” – Pay Up or the Club Dies!

Yesterday I wrote about the new HMRC petition to wind up Hearts over a tax debt in excess of £400,000.

The announcement of this, which the Hearts Board had to do if they wish to proceed with their share issue, was followed by an apocalyptically titled letter to the fans – The future of Heart of Midlothian.

It reads as follows, with my comments in bold:-

———————————————————

Today the Board of Heart of Midlothian plc is writing to you with the express wish that every supporter provides emergency backing for the club.

This is not so much a request as a necessity.

To use the words yesterday of John Robertson, one of the greatest players in this club’s history, this is a “Call to Arms”.

There is no greater need than now for supporters to invest in the club in whichever way you can, without delay. How can you do this?

HMRC v Hearts – A New Winding Up Petition – Might Sink Share Issue…and the Club

Recently I wrote about the Hearts share issue, the fact that the support seemed to be fully behind the efforts to raise funds to keep the club going to the end of the season, and the numerous risk warnings which basically amounted to the Hearts Board saying that there was literally no chance at all of any return whatever in return for buying the shares.

The share issue was a cri de couer by the Board. Having pointed out that the business was effectively insolvent, the Board said that is the share issue failed, then they would have to source the money from elsewhere. Who would lend to an admittedly insolvent business?

Today saw two announcements from Hearts, both of which emphasise the parlous position the club finds itself in. I will deal with the second in a later post.

 ————————————————–

The Board Statement – Winding Up Petition

Heart of Midlothian plc (the “Club”) today wishes to make supporters and potential share offer investors aware of this most recent financial matter for their consideration in conjunction with the Share Offer 2012 brochure.

The Club has been served with an Order to wind up Heart of Midlothian plc by the Court of Session on behalf of the Commissioners for Her Majesty’s Revenue and Customs (the “Petition”).