Big Rangers Administration/Liquidation Thread - All chat here!

[CityDave]

Looks like HMRC wanted to kill to birds with one stone, one down, one fled the country.

Ex-Rangers owner Craig Whyte was being chased by the taxman for £3.74m BEFORE he started his catastrophic reign at Ibrox

• Aug 05, 2014 07:30
• By Keith Jackson
• 3 Comments

HMRC had instructed debt enforcers to chase Whyte with a bill for almost £4million and threaten him with bankruptcy in May 2011 - the same month that he bought Rangers

THE taxman was chasing Craig Whyte for £3.7million before he took over Rangers.

HMRC focused on Whyte’s personal finances and made several failed attempts to get him to pay his dues before, during and after his catastrophic reign at Ibrox.

The taxman regarded Whyte as a “flight risk”, fearing he might flee the country without settling his huge tax bill.

Documents seen by the Record show:

* The authorities instructed debt enforcers to chase Whyte with a bill for almost £4million and threaten him with bankruptcy in May 2011, the same month that he bought Rangers.

* It was the culmination of a probe begun the previous year when the taxman learned Whyte had returned to the UK in 2005.

* Whyte was continually warned he was failing to submit satisfactory tax returns and risked being fined.

* He actually claimed at one stage to have a UK taxable worth of just £24 in accrued bank interest.

* Yet when he struck the notorious deal with Ticketus for funds to finance his Rangers takeover, he gave the firm a personal guarantee he was worth nearly £33million.

This “guarantee”, which was obtained by HMRC, helped them calculate Whyte’s £3,741,835.29 tax bill but he continued stalling tactics to avoid coughing up.

At the same time he was able to run up a further £15million in unpaid taxes and penalties during his nine months in charge of Rangers.

Whyte had bought Rangers for £1 from Sir David Murray in May 2011, while agreeing to wipe out the club’s £18million debts.

But on February 14, 2012, he made a legal move to have the Ibrox outfit placed into administration.

By then the club’s debt had rocketed to around £50million.

HMRC then rejected a Company Voluntary Arrangement, forcing the club’s owners to be liquidated in a move which also saw Rangers having to start again in the lowest tier of Scottish football.

David Murray has long blamed the taxman for the demise of Rangers, saying the spectre of the Big Tax Case – a potential bill of between £46m and £100million, hanging over the club forced his hand in selling up.

But a sizeable proportion of Rangers fans still hold Murray at least partly responsible for the club’s demise, arguing he should not have sold to Whyte, whose reputation had already been questioned.

Ultimately, Rangers won the Big Tax Case when a tribunal ruled Employee Benefit Trusts paid to players were in fact loans not subject to tax – and HMRC’s appeal against that judgment was rejected this year.

Fans remain furious at the taxman for bringing the case in the first place, and the latest documents from July 2012 obtained by the Record are unlikely to quell their anger.

They show HMRC began building their case against Whyte from the moment his proposed take over first hit the headlines in November 2010, six months before he was eventually handed the keys to Ibrox.

The paperwork from the taxman’s high net worth unit states: “HMRC became aware that Whyte had returned to live in the UK when the press carried stories in 2010 that he was potentially going to purchase Rangers Football Club plc.

“HMRC discovered that Whyte had been back in the UK since 2005. He did not notify HMRC of his return to the UK, nor did he complete tax returns.”

The documents go on to chronicle various atttempts by the taxman to force Whyte to detail his finances and warnings of fines he faces if he fails to comply.

In the absence of his co-operation, the tax office made their own calculations and issued Whyte with demands for £1million for the financial year 2006-07 and £1.2million for the following year.

Whyte did finally submitted some returns. But the documents note: “The returns contained entries in respect of net UK bank interest of £24 for 2006-07 and £491 for 2007-08.”

This pattern continues throughout the reports, until a damning revelation centring on Whyte’s takeover of Rangers when he secured funding from Ticketus to head off the club’s future debt in exchange for money from season ticket sales.

Presumably to convince Ticketus he was a genuine businessman, Whyte gave his own word that he was good for the investment, according to the HMRC documents.

They state: “The personal guarantee included a statement of Whyte’s net worth, signed by him, which showed he had net assets with a value of £32,956,843.”

This was the evdience HMRC needed to slap Whyte with the tax bill of £3,741,835.29 at the time of his takeover.

Just four days after he posed for pictures with the SPL trophy at Rugby Park following a thrilling last day climax to the league campaign, a letter was written to Whyte by HMRC’s higher debt manager detailing the claim and giving him seven days to pay in full.

Whyte was warned that a warrant would be served on him by a sheriff officer who would also provide him with a leaflet entitled Dealing with Debt to help him assess his options.

The letter continues: “If the debt remains unpaid, I will arrange to present a sequestration petition in your local sheriff court. The effect of this is that you are likely to be made bankrupt and a Trustee appointed to sell your assets and pay your creditors.”

Even then Whyte continued to stall, appealing to a tribunal against the judgment. As HMRC do not discuss private tax dealings, the outcome as yet remains unknown.

But the emergence of HMRC’s serious concerns about Whyte before his takeover prompted further anger among senior Rangers figures.

Alastair Johnston, Rangers chairman at the time, pleaded with Murray not to sell the club to Whyte. He was subsequently axed.

Presented with the revelations last night, he said: “On the back of this, I would welcome a full-scale, independent investigation into the actions of HMRC around the Rangers issue.”

Former director Paul Murray added: “I have always said that what has happened to Rangers has been nothing short of disgraceful.

“The club has been the victim of a fraud. A lot of people have made a lot of money at the club’s expense and it has to end.

“It is in the public interest to find out exactly what has happened and then to take action. Justice must be done and be seen to be done.”

[Monkey Tennis]

So, because Craig Whyte was under personal investigation for his long-standing tax behaviour; HMRC had no right to pursue Rangers over the entirely separate EBT issue?

What semblance of logic is there in such a deduction?

Again, this idea of a link is part of the subtext the Record are peddling.

I'm not pretending it's anything like as important, but it's reminiscent of the insidious attempt by the Bush administration and right wing press to link 9/11 with Iraq, in people's minds.

[Sting777]

The very fact that the article is written by Keith "wealth off the radar" Jackson sums it up. Paul Murray, Alistair Johnston, the Sevconians all want the HMRC to be held to account. Facts are, Moonbeam sold the club without checking who he was selling it to and the club was already a basket case when Whyte took it over. That was Moonbeams responsibility, not HMRC!Some guys need to seriously look in the mirror. Seems that the death of Rangers was everybody else's fault except the club itself. That should surprise no one!

Edited August 5, 2014 by Sting777

[No8.]

So, because Craig Whyte was under personal investigation for his long-standing tax behaviour; HMRC had no right to pursue Rangers over the entirely separate EBT issue?

What semblance of logic is there in such a deduction?

Again, this idea of a link is part of the subtext the Record are peddling.

I'm not pretending it's anything like as important, but it's reminiscent of the insidious attempt by the Bush administration and right wing press to link 9/11 with Iraq, in people's minds.

IF Hmrc were already investigating whyte why was he then allowed to run up such a huge tax bill at Ibrox?

[AberdeenBud]

Keith Jackson.

Again, you have to admire his chutzpah, if nothing else.

The very man who's churnalism helped pave the way for The Hero and his rapturous welcome has now turned his dog whistle onto HMRC. Thankfully some of us have a brain larger than a goldfish and remember his shameless performance throughout this saga.

He can win all the 'awards' he likes, his name amongst Scottish Football fans will forever be a byword for craven, inept journalism and bigot fluffing.

[williemillersmoustache]

What I like the most is the implication that oldRangers should have been helped and warned by the evil taxman, while the club ignored, obfuscated and waved their metaphorical goolies in the taxmans face over the Big Tax Case and the discount option scheme.

I'm sure they were just leaping to help that poor, innocent, victim of a club. Reap what you sow

[stonedsailor]

IF Hmrc were already investigating whyte why was he then allowed to run up such a huge tax bill at Ibrox?

He wasn't remember? HMRC forced Rangers to be liquidated over the tax bill.

[AberdeenBud]

IF Hmrc were already investigating whyte why was he then allowed to run up such a huge tax bill at Ibrox?

Big bad hmrc at it again, eh?

'He' didn't run up anything, oldco Rangers did.

[flyingrodent]

IF Hmrc were already investigating whyte why was he then allowed to run up such a huge tax bill at Ibrox?

Perhaps because if anyone had made any attempt at all to intercede, your supporters - to a man - would all have gone mental about conspiracies against the club?

Let's recall what happened when the BBC exposed Whytey as a shyster. Did the Rangers fans a) Thank them or b) Call them bigoted, biased and corrupt, then conduct a protest campaign against them?

[flyingrodent]

What I like the most is the implication that oldRangers should have been helped and warned by the evil taxman, while the club ignored, obfuscated and waved their metaphorical goolies in the taxmans face over the Big Tax Case and the discount option scheme.

I'm sure they were just leaping to help that poor, innocent, victim of a club. Reap what you sow

Spot. On.

[stonedsailor]

Keith Jackson.

Again, you have to admire his chutzpah, if nothing else.

The very man who's churnalism helped pave the way for The Hero and his rapturous welcome has now turned his dog whistle onto HMRC. Thankfully some of us have a brain larger than a goldfish and remember his shameless performance throughout this saga.

He can win all the 'awards' he likes, his name amongst Scottish Football fans will forever be a byword for craven, inept journalism and bigot fluffing.

Typical Rangers man. He sold CW to the berz so he has to deflect that now and blame HMRC.

[RedRob72]

IF Hmrc were already investigating whyte why was he then allowed to run up such a huge tax bill at Ibrox?

And pass the SFA/SPL 'fit and proper persons' criteria to buy and run a Scottish Foottball Club' ??? Oh wait.....

[Monkey Tennis]

IF Hmrc were already investigating whyte why was he then allowed to run up such a huge tax bill at Ibrox?

He wasn't allowed to?

Do you not remember the result?

[Ken Fitlike]

Did Craigie dupe people?

sorry....'Peepul'

[Monkey Tennis]

And pass the SFA/SPL 'fit and proper persons' criteria to buy and run a Scottish Foottball Club' ??? Oh wait.....

Indeed. Because as you suggest, such a test or whatever is pretty toothless and relies on clubs behaving responsibly in doing necessary vetting.

Can you imagine the outcry had the sale to 'Wealth off the Radar' been blocked? Look what happened when the BBC tried to tell us what this guy was like.

This simplistic and dishonest attempt to portray HMRC as the bad guys will be seen through easily by everyone in possession of brains.

[Henrik's tongue]

This simplistic and dishonest attempt to portray HMRC as the bad guys will be seen through easily by everyone in possession of brains.

Anyone of a non Rangers persuasion then.

[Bookies Love Me]

And pass the SFA/SPL 'fit and proper persons' criteria to buy and run a Scottish Foottball Club' ??? Oh wait.....

It's the club/company that carries out the "fit and proper persons" criteria test and pass their findings to the relevant Footballing body.

F*ck all to do with SPL/SFL or HMRC.

You lot played Russian roulette with five full chambers and f*cking died. End of.

[youngsy]

Big bad hmrc at it again, eh?

'He' didn't run up anything, oldco Rangers did.

It was Whyte whilst owner of the club who held back payment of PAYE & N.I. Yourself and others can dress this up whichever way you like but those are the facts. Without a doubt Murray and Lloyds would have known of this tax issue of Whytes so imo they too are complicit in what happened but HMRC should have shown a sense of responsibility by not allowing Whyte to withhold PAYE for the best part of 9 months.

This was approx £15 million PAYE accumulated over 9 months, why did HMRC allow such a sum to be built up over such a period of time, knowing full well they were already investigating Whyte for similar.

[Sting777]

It was Whyte whilst owner of the club who held back payment of PAYE & N.I those are the facts.

Agreed, so Rangers were liquidated for failure to pay tax and NI along with hundreds and hundreds of other debts. Not sure what your point is. Whyte owned Rangers and they failed to pay their debts so Rangers were liquidated and died...end of story

Edited August 5, 2014 by Sting777

[Henrik's tongue]

It was Whyte whilst owner of the club who held back payment of PAYE & N.I. Yourself and others can dress this up whichever way you like but those are the facts. Without a doubt Murray and Lloyds would have known of this tax issue of Whytes so imo they too are complicit in what happened but HMRC should have shown a sense of responsibility by not allowing Whyte to withhold PAYE for the best part of 9 months.

This was approx £15 million PAYE accumulated over 9 months, why did HMRC allow such a sum to be built up over such a period of time, knowing full well they were already investigating Whyte for similar.

Nah. Not having that.