Time for Scots Government to Take Bull by the Horns

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The Chairman of RIFC has certainly come out with all …

Comment on Time for Scots Government to Take Bull by the Horns by Billy Boyce.

The Chairman of RIFC has certainly come out with all guns blazing today.  He is unapologetic and doesn’t mince his words that there was no sporting advantage gained on the field regardless of the cost.  He is effectively saying RFC would have spent an additional £50m it didn’t have to buy players if the club hadn’t used EBTs.

Contrast this statement with the one he made in June 2012
http://www.dailymail.co.uk/sport/football/article-2161850/Rangers-crisis-Dave-King-apologises.html

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Time for Scots Government to Take Bull by the Horns
The Sunday Herald article:

Craig Whyte in line for £5m liquidation payout as HMRC is set to lose out on Rangers tax case payback FORMER Rangers owner Craig Whyte is in line for a £5 million payout from the liquidated funds of the company which owned the club while the tax authorities, owed more than £90m, are not expected to receive a penny. It comes as it emerged a claim over the whole of the £15 million pot to be distributed to creditors of the liquidated Rangers oldco is being resurrected. News of the legal bid came after Whyte was cleared of fraud and financial assistance in the 2011 takeover of the club – the only apparent obstacles in the way of a successful bid.  If the claim is successful it would mean that the taxman, having won the Big Tax Case after a seven year battle to get millions owed from the use of Employee Benefit Trusts (EBTs),could end up getting nothing from the liquidation. The collapse of the The Rangers Football Club plc, dubbed ‘oldco’ in 2012 under Whyte’s watch left thousands of unsecure creditors out of pocket including more than 6000 loyal fans who bought £7.7million worth of debenture seats at Ibrox. Creditors ranged from giants such as Coca-Cola to a picture framer in Bearsden and a lady called Susan Thomson who runs a face-painting business and was owed £40. Court documents seen by the Sunday Herald reveal that BDO’s rejection of an initial claim now being put forward by Wavetower, the firm used by Whyte to takeover Rangers, was based on the businessman being guilty of fraud and financial assistance.  Those behind the claim believe that with the court case out of the way, BDO and the courts cannot now resist their view that it holds a legitimate claim over the £15 million as the only secured creditor and first in line ahead of the taxman and other ordinary unsecured debtors. That is because the firm Whyte used to buy the club inherited a security over assets including Ibrox and Murray Park from Lloyds Banking Group after paying off Rangers’ £18 million debt using future season ticket sales. The clearing of the debt was a condition of Whyte’s purchase of the club from Sir David Murray in May 2011.  The security was originally set up in 1999 in favour of the Bank of Scotland, part of the Lloyd Banking Group, in response to Rangers’ ballooning debt figure, and involved securing a charge over its income and assets. Mr Whyte is no longer a director of Wavetower, and the claim is now controlled by directors associated with Worthington plc, an investment firm, also once connected to the former Rangers owner. Worthington directors have previously confirmed that it was obliged to pay Mr Whyte £1 million in unsecured convertible loan notes as a result of gaining rights to legal actions and one third of the proceeds of any claims. The deal between Worthington and Law Financial, a firm set up by Whyte also included obtaining the book, film and television rights to the two takeovers of The Rangers Football Club in 2011 and 2012.  One source close the claim said: “The recent not guilty verdicts [in relation to the Whyte case] would appear to leave the road open for a successful claim.” Court documents show that BDO had fought the idea that they were secured creditors because “the assignation agreement was part of a fraudulent scheme”. But a judgement by Lord Doherty made last year decided to put off any decision on the rights and wrongs of the claim until after Whyte’s fraud trial. He said: “I am satisfied that (i) whether there was a fraudulent scheme involving [Wavetower], and (ii) whether [Wavetower] was the recipient of unlawful financial assistance.. are both issues which arise in the proceedings. In those circumstances hearing the appeal before the criminal proceedings have been concluded would trespass upon matters at issue before the High Court of Justiciary, with the risk of prejudice to the administration of justice in those proceedings.”  Last month a jury cleared Whyte of fraud and financial assistance over his takeover in less that two hours. The case revolved around Whyte’s deal to sell off rights to three years of future season tickets to investment firm Ticketus in a bid to raise £24 million to fulfil his agreement with Murray over the purchase, secured by personal guarantees. Murray said he would never have sold if he knew about the tickets deal. But Donald Findlay QC defending said Whyte was the “fall guy” for the state of the club and as the share purchase agreement with Murray referred to using “third party funding” there was no deception and so no fraud. Just ten days ago Her Majesty’s Revenue and Customs won a long-running legal battle over the use of EBTs to pay players and staff at Rangers Football Club. The tax authority opened its investigation into Rangers in 2010 after about £50 million worth of payments were made to dozens of employees through employee benefit trusts (EBTs) from 2001, and the case continued after liquidation. After suffering two tax tribunal defeats to the Murray Group, the former majority shareholder of Rangers which administered the EBT scheme, HMRC won a binding Supreme Court judgement. Lord Hodge and his fellow judges agreed with HMRC’s assertion the payments were taxable earnings and not loans, as contended by the club.  It lay the way clear for the taxman to lay claim to a small portion of what was owed from the liquidated oldco now named RFC 2012 plc, Liquidators have previously confirmed that £72m of the £94.4m owed to Her Majesty’s Revenue and Customs (HRMC) relied on the taxman’s claim that Rangers oldco was liable for its use of EBTs


Time for Scots Government to Take Bull by the Horns
Today the Daily Record has the latest RFC ‘legend’ gracing its back page attacking the title stripping campaign.  It is none other than Dutchman Arthur Numan and he is reading from a now very familiar script, namely that the titles were won fairly and squarely on the field and it’s just sour grapes on Celtic’s part.  Despite most of the page being devoted to his article, there is no attempt by the intrepid reporter to quiz him on his own substantial EBT or to ask him if he will now do the decent thing and pay his dues to HMRC.  Arthur usually participates in Rangers charity matches for a fee + expenses.  I wonder if he is picking up a cheque for doing Level 5’s bidding?
 
What former Ibrox hero has that nice Mr Traynor lined up for tomorrow – and the day after – and the day after that?


Time for Scots Government to Take Bull by the Horns
One of the replies to JJ’s blog today asks of Regan: “Time to tell the nation if the SFA paid ‘ the side letter’ element of the RFC player’s ‘remuneration’ claimed, when injured on Scotland duty, as Heidi forensically disclosed.”

Was this point ever discussed on SFM or RTC before it?


Recent Comments by Billy Boyce

It Is Better To Offer No Excuse Than A Bad One
Sorry, the Sunday Mail extract I posted (above) omitted the Mark Allen article – now attached 


It Is Better To Offer No Excuse Than A Bad One
Homunculus December 24, 2017 at 12:15
Does anyone else suspect that  Mr Allen may see his future elsewhere.
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It looks as if there is a whispering campaign against Allen within the Blue Room.  The Sunday Mail article (attached) suggests Mark is getting his retaliation in first before he becomes the next club official to ‘resign’.  Even the Herald feels the need to give its tuppenceworth on his role in this latest saga.  I wonder who has suddenly turned the spotlight on the esteemed Director of Football?
http://www.heraldscotland.com/sport/15791381.Mark_Allen__My_role_at_Rangers_has_been_greatly_misunderstood/


It Is Better To Offer No Excuse Than A Bad One
Does impecuniosity trump concomitant?

” Given the circumstances put forward by the respondent in support of his supposed impecuniosity they are of no significance. His impecuniosity is entirely self-generated….the Trusts have been willing to provide money for the purchase of Rangers shares when the respondent wished them to do so. Now, suddenly, when the respondent does not wish to comply with the terms of Rule 9 the Trusts no longer are willing to provide any money. “


It Is Better To Offer No Excuse Than A Bad One
WOTTPI Dec 20th 2017 at 16.56
As an aside it is obvious Lord Bannatyne wants things off his desk before the festive break.
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If indeed His Lordship promulgates his judgment on Friday 22nd then I for one would be highly suspicious of the baffling delay in doing so.  Lord Bannatyne was required to make a comparatively simple ruling on whether he “may” or “must” decide.  It is not as if he was tasked with safeguarding the constitution of the realm.  Even sending a felon to the gallows would not entail the length of time this matter has sat on his desk.
 
With the recent flurry of activity down Ibrox way, I wonder if Lord Bannatyne has deliberately waited until certain moves have been completed so that any ‘cold shoulder’ process against King becomes superfluous.  Time and truth will tell.


It Is Better To Offer No Excuse Than A Bad One
Sour grapes or just some mischief making?  I heard on Radio Scotland’s sports slot this morning that Chris Jack is reporting there’s more to the McInnes appointment saga than meets the eye.  Apparently, progress talks even got as far as Derek selecting the Ibrox side for the Ross County game on Saturday.  Has the Concomitant King instructed his PR guru to stir the pot? 


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